Three weeks after Saxonburg-based optical instruments maker II-VI had its unsolicited $169.4 million takeover bid for Zygo Corp. rejected by Zygo's board of directors, II-VI officers announced today the company will cease its acquisition efforts and withdraw its proposal to acquire Zygo for $10 per share.

II-VI submitted an offer to the Connecticut optics firm's board of directors on Jan. 5 to acquire all of its outstanding common shares. At the time the offer was made, it represented a premium of 46 percent to the 30-day trading average of Zygo shares.

In rejecting the proposal, Zygo's board said the company was not for sale and that it was in the best interests of its shareholders to allow Zygo's newly named CEO, Dr. Chris L. Koliopoulos, to pursue a stand-alone strategy.

II-VI's president and CEO Francis J. Kramer said in a statement today that "II-VI's desire was to proceed in a friendly manner. Given the reluctance of Zygo's board of directors to share with us the prospect of their strategic plan for creating shareholder value and their unwillingness to even enter into discussions with us regarding our proposal, we have decided to withdraw our offer for Zygo and instead focus on our existing business and other strategic opportunities available to II-VI."

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