U.S. Stalls Dutch Takeover of High-Tech Firm

The Bush administration stalled a Dutch company’s proposed takeover of San Jose-based Silicon Valley Group Inc. pending a 45-day national security review. Acting at the 11th hour, the Defense Department sought the delay on ASM Lithography Holding’s proposed $1.6-billion acquisition of SVG, a leading supplier of equipment used in making computer chips. Through its Tinsley Laboratories subsidiary, SGV also crafts precision optical parts, including mirrors and lenses used in satellite and aerial photography by the U.S. government. David Tarbell, deputy undersecretary of Defense for technology security policy, urged the delay in a two-sentence memo to the Treasury Department.