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Technology Stocks : LSI Corporation

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To: Tony Viola who wrote (17303)3/5/1999 10:10:00 AM
From: Jock Hutchinson  Read Replies (1) of 25814
 
Tony: What is your take on the Level One Merger with Intel? Barrett was quoted as saying that he was looking into more opportunities to merge with other leaders in the networking chip business. The last time I checked, LSI was in that business. Intel essentially paid a price of 9 times sales. At 60 bucks a share, LSI would be going for only 4.5 times sales. Or looking at it another way, (assuming that networking makes up 20 percent of LSI's business), that would make the networking business of LSI worth 25 bucks a share by itself--assuming the same value is assigned to LSI's networking business as to Level One's.
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