Micron Technology takes stake:
Sunday March 21, 5:05 pm Eastern Time
Micron sells display unit, Q2 profits cut
SANTA CLARA, Calif., March 21 (Reuters) - Chipmaker Micron Technology Inc. (NYSE:MU - news) said it signed a deal to sell its computer display business to PixTech Inc. (Nasdaq:PIXT - news), a maker of field emission displays, a new type of flat-panel display.
Micron said Friday the deal is expected to reduce its second-quarter earnings by about 3 cents a share. Analysts have estimated that Micron will lose 1 cent per share for the quarter, ended February, compared to a loss of 23 cents for the period last year, according to First Call Corp, which tracks the data.
Micron will pay about $4.4 million in cash to PixTech, assume some liabilities, and will receive about 7.1 million PixTech common shares and warrants to buy another 310,000 PixTech shares at about $2.25 a share.
After the deal, Micron will own about 32 percent of PixTech's outstanding common stock.
In Nasdaq trading on Friday, PixTech shares closed up 12.5 cents at $1.81. Micron, which soared to $74.625 in February, closed off $1.56 to $50.50 in New York Stock Exchange trading.
The agreement must be approved by the Federal Trade Commission. Also, PixTech stockholders must approve an increase in the authorized number of shares. The transaction is expected to close shortly after PixTech annual meeting on April 27.
PixTech will maintain its Santa Clara office for executive management and sales and marketing, and expects to move some employees to Micron's Boise, Idaho, operation. |
