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AMSTERDAM, Sept 25 (Reuters) - Dutch chip-equipment maker ASML (ASML.AS:
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The 5.75 percent subordinated bond due Oct. 15 enables investors to buy ASML shares at $18.66 (14.70 euros). ASML shares were trading at 17.56 euros at 0826 GMT on Monday, a 1.3 percent rise. The notes of the $575 million bond are convertible into 30.8 million ordinary shares at any time prior to maturity. This could dilute profits per share by just over 6.3 percent.
ASML will most likely buy up some of the convertibles from large institutions and not convert the bonds into shares.
"The transactions will be consistent with prior disclosures and authorisation by the Annual General Meeting of Shareholders to repurchase up to 10 percent of the issued share capital of ASML, and the company's subsequent share buyback program completed on July 13, 2006 through which ASML acquired 5.25 percent of its outstanding shares," ASML said in a statement.
The company said that even if bought the entire 10 percent of shares it is allowed to buy back, this could not completely neutralise the dilutive effect of the convertible.
But it reiterated that it remained committed to returning excess cash to shareholders in the future.
ASML generated 330 million euros of net cash with its operations in the second quarter and sat on a cash pile of 1.73 billion euros by the end of June.
It is the world's largest maker of semiconductor lithography machines which map out electronic circuits on silicon wafers. It competes with Japan's Nikon Corp (7731.T:
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ASML's customers include the world's largest chip maker Intel Corp (INTC.O:
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