This is the deal - a good one indeed!
Tuesday March 28, 12:00 pm Eastern Time
Alliance sees gain from Vitesse/Orologic deal
SANTA CLARA, Calif, March 28 (Reuters) - Alliance Semiconductor Corp. (NasdaqNM:ALSC - news) said on Tuesday it will report a pre-tax gain of about $68 million upon completion of Vitesse Semiconductor Corp.'s (NasdaqNM:VTSS - news) acquisition of Orologic Corp.
In connection with the proposed $450 million stock deal, Alliance, through its new venture arm, Alliance Venture Management LLC, would get about 852,000 shares of Vitesse for its equity interest in Orologic, the company said.
The deal is expected to close before the end of April.
Orologic, based in Morrisville, North Carolina, was founded in October 1997 as a fabless semiconductor company.
Alliance said it would report a gain based on the closing share price of Vitesse on the date of the merger. Based on Vitesse's closing price of March 27, the estimated pretax gain would be about $68 million, it said.
Vitesse shares, which closed at 95-15/16 on Monday, rose 8-5/16 to 104-1/4 on Tuesday. |
