Feb. 16--II-VI Inc.'s unsolicited, $170 million bid for rival and partner Zygo Corp. has been unanimously rejected by the Middlefield, Conn.-based company's board.

The company's board said this morning that Zygo isn't for sale, and that it's in the best interests of its shareholders to allow the company's newly named CEO, Chris L. Koliopoulos to pursue a stand-alone strategy.

"The board strongly believes Zygo's shareholders will be best served by keeping the company independent and pursuing its long-term strategy," Koliopoulos said. "Zygo is a great company with industry-leading products and technologies, strong positions in its core optical and metrology markets, and significant growth opportunities."

Koliopoulos was named Zygo's chief executive on Jan. 19, and its chairman on Feb. 12.

Saxonburg, Butler County-based II-VI offered Zygo stockholders $10 a share in cash or its shares. Zygo is a supplier of optical measurement instruments, precision optics and electro-optic design and manufacturing services.

In rejecting II-VI's offer, the Zygo board said the company only has begun to realize the benefits of recent initiatives to refocus the company on its core optical and metrology markets, and to reduce costs.

Rick Stouffer is a Pittsburgh Tribune-Review staff writer and can be reached at 412-320-7853 or via e-mail.

To see more of The Pittsburgh Tribune-Review or to subscribe to the newspaper, go to http://www.pittsburghlive.com/x/pittsburghtrib/.

Copyright (c) 2010, The Pittsburgh Tribune-Review

Distributed by McClatchy-Tribune Information Services.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.