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To: JEFF K who wrote (42304)	6/20/1999 12:29:00 PM
From: John Rieman	Respond to of 50808

TI gets Libit........................................... Sunday June 20 8:44 AM ET Texas Instruments To Buy Israel's Libit TEL AVIV, Israel (Reuters) - Texas Instruments (TI) will buy Israel's Libit Signal Processing for $329 million, Discount Investment Corp, a shareholder in Libit, said Sunday. In a statement to the Tel Aviv Stock Exchange, Discount said that Texas Instruments would pay $315 million to Libit shareholders, with the remainder being paid to holders of Libit warrants. A spokeswoman for Texas Instruments (TI) in Israel would not comment on the report and officials from Libit were not immediately available. Discount said the deal, which is subject to various conditions, was expected to be completed on June 30. Discount said it would receive $12.9 million for its 4.1 percent stake. Friday, Discount subsidiary PEC Israel said it had agreed to sell its 4.1 percent share in Libit for the same amount. Libit makes chips for the cable modem, set-top box and digital television markets, empowering high-speed Internet access. ''Texas Instruments wants to be in the market of sophisticated chips,'' a financial source in Tel Aviv said, explaining the reason behind the acquisition. In January TI paid $50 million to buy Israel's Butterfly VLSI Ltd, a maker of low-cost chipsets for short-distance radio frequency wireless communications. Earlier this year Lucent Technologies Inc (NYSE:LU - news) had sought to acquire Libit for $260 million. But according to the source a deal was never finalized and TI stepped in after talks with Lucent broke off. At the time TI acquired Butterfly, officials said the U.S. company would develop an Israeli subsidiary around Butterfly and would consider additional acquisitions in Israel. The founders of Libit hold about 52 percent of the five-year-old company. Other shareholders include the Giza Group of Israel with seven percent, Intel Corp (Nasdaq:INTC - news) with six percent and GE Capital, a unit of General Electric Co, with 2.5 percent.