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Technology Stocks : Texas Instruments - Good buy now or should we wait? -- Ignore unavailable to you. Want to Upgrade?

To: md1derful who wrote (4586)	7/28/1999 9:45:00 PM
From: Patriarch	Read Replies (1) \| Respond to of 6180

For some reason, I didn't see this posted: --------------- Texas Instruments to buy Unitrode in $1.2bln deal July 26, 1999 03:12 PM (Adds analyst comment paras 5-7, background, updates stock price) By Marcus Kabel DALLAS, July 26 (Reuters) - Computer-chip supplier Texas Instruments Inc. TXN on Monday said it would acquire Unitrode Corp. UTR , a maker of semiconductors for managing battery life in portable electronics, in a $1.2 billion stock deal. Texas Instruments said it expected to issue about 8.9 million shares in exchange for all outstanding shares of Unitrode, or about $38.60 for each Unitrode share. Shares of Dallas-based Texas Instruments were down $3.75 at $135.25, and Unitrode shares jumped $8 to $34.75 by early Monday afternoon, both in trading on the New York Stock Exchange. TI said in a statement the Unitrode deal would complement its own product line of analog computer chips by adding technology for power management, increasingly in demand for mobile phones, laptop computers and advanced mobile electronics. Analysts said the price paid for Unitrode seemed fair compared with the valuation of comparable companies in the chip industry. "It's a good acquisition. It fills out their product line and it's not costing them too much," said Jonathan Joseph of Salomon Smith Barney. "It will be neutral for earnings per share this year and slightly positive next year." Analog chips process information found in the natural world, such as sounds, into digital information. TI is the world's largest supplier of analog chips, according to market research firm Dataquest. Dataquest said the total available market for analog chips in 1998 was worth $21.6 billion, with a projected growth rate of more than 15 percent for 1999, while the power management segment was worth $2.2 billion in 1998 and is expected to reach $4.1 billion by 2002. Unitrode will continue to operate from its headquarters in Merrimack, N.H., the TI statement said. Unitrode's three lines of components -- for power supply control, interface and battery management -- have virtually no overlap with Texas Instruments semiconductors, TI said. The business of making chips for battery management fits nicely with TI's dominant position in producing digital signal processors (DSPs), which allow mobile phones and other portable devices to communicate with each other. Two out of three digital mobile phones sold in the world are estimated to use DSP chips from TI. The value of the deal was calculated based on TI's closing stock price on July 23. ((Dallas Newsroom, 972 980 4192, fax 972 233 3165)) REUTERS