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Technology Stocks : The New QLogic (ANCR) -- Ignore unavailable to you. Want to Upgrade?

To: Lhn5 who wrote (26743)	5/8/2000 1:39:00 AM
From: Sarkie	Read Replies (1) \| Respond to of 29386

Networking-Equipment Maker QLogic May Buy Rival Ancor For $1.8 Billion ============================================================ NEW YORK -(Dow Jones)- QLogic Corp. agreed to acquire Ancor Communications Inc. in a stock swap valued at $1.8 billion, or $52.71 a share, company officials told Monday's Wall Street Journal. The transaction brings together two companies that make equipment for computer-storage networks. An announcement is expected as early as today. The deal is significant because it comes at a time when stock-market volatility in general and the downdraft in technology stocks in particular have prompted fears that the pace of technology mergers will subside. This transaction suggests that the trend may continue, especially if the stock prices of the two potential partners are similarly volatile. Both QLogic and Ancor have fallen in recent months. At 4 p.m. Friday on the Nasdaq Stock Market, QLogic was up $8.875 to $99.9375, less than half its 52-week-high of $203.25, set two months ago, and Ancor was up $1.0625 to $31.1875, off two-thirds from its December high. Ancor shareholders will receive 0.5275 a share of QLogic for each share of Ancor. Based on Friday's close, Ancor shareholders are receiving a 69% premium for their shares. The transaction, which will be accounted for as pooling of interests, is expected to add to QLogic's earnings next year. Ancor shareholders are expected to own about 18% of the combined company. Ancor, Eden Prairie, Minn., makes "fibre channel" switches that connect servers to storage machines in "storage area networks," or SAN, allowing computer servers to save and retrieve data without slowing a network. The company has attracted interesting partners. In December, Intel Corp. said it invested $14.8 million in Ancor to develop and market switches based on a new computer architecture. Ancor had a net loss of nearly $2 million, or seven cents a diluted share, on net sales of $6.9 million. QLogic, Aliso Viejo, Calif., sells fibre channel adapters and supplies semiconductor and other products to computer-system companies. Copyright (c) 2000 Dow Jones & Company, Inc. All Rights Reserved. ================================================================