Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Rockwell-Spins off Conexant (CNXT) -- Ignore unavailable to you. Want to Upgrade?

To: Boplicity who wrote (515)	11/21/1999 2:08:00 PM
From: w molloy	Respond to of 2013

11/19/99 - CNXT to annex PairGain's chip biz? Nov. 19, 1999 (Electronic Buyers News - CMP via COMTEX) -- Silicon Valley- PairGain Technologies Inc.'s microelectronics group could fall into the hands of Conexant Systems Inc. or Level One Communications Inc., an analyst said last week. The company's captive chip business, worth between $150 million and $200 million, was put up up for sale last week when PairGain decided to concentrate on its core competencies-DSL equipment and software. Tustin, Calif.-based PairGain has retained Broadview International LLC to sell the microelectronics group, which makes chips for the company's line of DSL equipment. "There's a lot of interest in the DSL-chipset segment," said analyst Chandan Sarkar of SoundView Financial Group, Stamford, Conn., referring to both Conexant and Level One. "[PairGain] is trying ways to maximize shareholder value," he added. PairGain specializes in making equipment based on a variety of DSL technologies, such as ADSL, HDSL, and HDSL-2. PairGain developed several chip technologies that have been licensed to outside vendors. Last year, the company licensed its G.Lite-chip technology to Newport Beach, Calif.-based Conexant, which declined to comment on the possibility of acquiring PairGain's microelectronics group. Level One, Sacramento, Calif., couldn't be reached by press time. Unlike some horizontally oriented communications companies, PairGain has decided to stick with the equipment side of the business. Qualcomm Inc., for instance, recently put its handset business on the selling block to focus on CDMA chipsets. "While the intense competition among chip-design firms has reduced the need to internally develop our microelectronic devices, we believe we'll maximize the value of our excellent microelectronics design capability by divesting the group to a purchaser that can leverage its talents on a much wider scale," said Mike Pascoe, chief executive of PairGain, in a statement. -0- By: Mark LaPedus Copyright 1999 CMP Media Inc.