Intel Takes 2.9% Stake in Proxim; Will Work on Home Networking
Santa Clara, California, April 28 (Bloomberg) -- Intel
Corp., the world's largest computer-chip maker, said it took a
2.9 percent stake in Proxim Inc. and the two companies plan to
jointly develop wireless home-networking products.
Intel said it bought 320,000 shares of Mountain View,
California-based Proxim, worth $10.4 million at today's closing
price. It also has a warrant to buy an additional 96,000 shares.
Intel has made a string of investments in recent months, aimed at
developing technologies or gaining access to new products.
Intel earlier this year agreed to buy networking-chip maker
Level One Communications Inc. and has investments in firms such
as LogicVision, Micron Technology Inc., Lernout & Hauspie Speech
Products NV and PictureTel Corp. Intel has an active venture
capital group that invests in companies with new technology that
it hopes can boost demand for personal computers.
Intel and Proxim will work on developing wireless products
that help link home computers and other consumer devices.
Santa Clara, California-based Intel jumped into the home
networking market earlier this month when it unveiled its
AnyPoint system, which links together multiple PCs in homes using
existing phone lines.
Shares of Intel fell 1 1/16 to 61 3/16. Proxim shares rose
1/4 to 32 3/8 before the investment was disclosed, then climbed
to 38 in trading after the close of U.S. markets.
--Molly Williams in San Francisco (415) 912-2993 |
