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Stock Analyst Update

Applied Materials Scores a Key Acquisition in Etec Systems

The top player in the semiconductor-equipment food chain just got bigger.

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The top player in the semiconductor-equipment food chain just got bigger.

Applied Materials (AMAT) struck a deal late Wednesday to buy fellow chip-equipment maker Etec Systems (ETEC) for $1.8 billion in stock. The merger will be accounted for as a pooling, and management thinks it will likely dilute earnings 1% to 2% in fiscal 2000.

Jeremy Lopez does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.