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Technology Stocks : Micron Only Forum

MU 241.14

-6.7%

Dec 12 9:30 AM EST

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To: eddie r gammon who wrote (35311)	6/18/1998 7:43:00 PM
From: johnlea	Read Replies (1) of 53903

not sure if the deal described below is good for either company in the short term. ti is taking on a current money loser that could drag down their earnings. mu looks like it gets diluted 12 to 17 percent, takes on some debt, and gets to increase their operating costs. i guess this must be viewed by both companies as 'investements in the future'. ----------------------------- FROM REUTERS TI to become Micron's largest holder June 18, 1998 06:29 PM SAN FRANCISCO, June 18 (Reuters) - Texas Instruments Inc. will become the largest shareholder of Micron Technology Inc. with an initial 12 percent stake as a result of the estimated $800 million sale of TI's memory chip business to Micron. Micron will issue 28.9 million common shares to Texas Instruments as part of its deal, which is equivalent to about 12 percent of the Boise, Idaho-based memory chip maker. The companies said on a conference call that, including the convertible notes that will also be issued, TI's stake will rise to about 16-17 percent of Micron, once the notes are converted. The notes are convertible into 12 million shares. The companies said the $800 million purchase price was calculated based on the prices of the 28.9 million shares of Micron common stock at today's market value and the amount of debt that Micron will assume from TI's Italian subsidiary. The companies said the value of the convertible and subordinated notes that are also part of the deal were not involved in the final purchase price, because the notes are offset by $750 million in financing that TI will provide to enable Micron to move its technology into TI's memory plants. Micron also said it does not expect any increases in its research and development spending to result from the deal. REUTERS

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