Betty and Intel Investors - Intel is IN THE CHIPS
FTC won't Block Intel's Acquisition of Chips and Technolgy.
Paul
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Tuesday January 13, 10:27 am Eastern Time
FTC clears path for Intel graphic chip acquisition
WASHINGTON, Jan 13 (Reuters) - The Federal Trade Commission said on Tuesday it
would continue to investigate Intel Corp.'s (Nasdaq:INTC - news) $420 million acquisition of
Chips and Technologies Inc. (Nasdaq:CHPS - news), a leading maker of graphics chips for
laptop computers.
But facing Intel's announced closing date of the merger, the agency said it would not seek a
preliminary injunction to halt the transaction. Instead, the investigation will become part of the
agency's ongoing, broad review of Intel's business practices.
''Because we have concerns about the impact of this transaction on competition in markets
for certain computer components, we have chosen to continue the investigation into the
lawfulness of the acquisition,'' the agency said in a statement.
The FTC reviewed the transaction for more than six months but did not turn up sufficient
evidence to convince a court that the deal would hamper competition, sources familiar with
the investigation said.
If the continuing investigation turned up evidence of wrongdoing by Intel, the agency could
seek to have the company divest Chips & Technologies.
Based in San Jose, Calif., Chips and Technologies is a top supplier of flat panel video
graphics controllers and accelerators for portable computers. The company is a so-called
''fabless'' company, using facilities owned by others to manufacture the products it designs
and sells.
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Chips & Technologies Inc (Nasdaq:CHPS - news)
Intel Corp (Nasdaq:INTC - news)
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