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Something funny is going on today with Photon Dynamics (PHTN).

The company, which is an equipment supplier to the flat-panel display business, has an agreement in place to be acquired by Orbotech (ORBK) for $15.60 a share in cash. In fact, on Friday the company announced that its holders had approved the deal. So riddle me this: Why is the stock trading like something about the deal has gone very wrong? PHTN is down $2.34, or 15.5%, to $12.74. Orbotech, meanwhile, is up 5 cents, at $10.52.

I’ve left a message for the company, and will left you know if/when I hear from them.

Orbotech, Ltd. (NASDAQ: ORBK), a designer, developer, manufacturer and marketer of yield-enhancing and production solutions for specialized applications in the supply chain of the electronics industry, recently announced its consolidated financial results for the second quarter ended June 30, 2008. Rani Cohen, the chief executive officer of Orbotech, commented earlier this week on the company’s financial performance and provided guidance for the remainder of 2008.

In a deal that will combine two equipment suppliers to the flat-panel display industry, Israel-based Orbotech (ORBK) this morning agreed to acquire San Jose-based Photon Dynamics (PHTN) for $15.60 a share in cash, or about $290 million. The deal is expected to close in the 2008 second half. Orbotech said the deal will be financed with a combination of internally generated funds and external financing, the nature of which it did not detail in the announcement.

ORBK this morning is down 13 cents, or 0.9%, to $14.81; PHTN is up $3.54, or 30.6%, to $15.10.