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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: cfoe who wrote (80264)	9/13/2000 10:05:51 PM
From: T L Comiskey	Respond to of 152472

cfoe...re rumor of Qcom and cxnt buyout After-hours spin-off news send Conexant higher By: Sam Ames 9/13/00 Source: CNET Investor Shares of Conexant rose 17 percent in after-hours trading after the company announced it would split itself into two companies. The Newport Beach, Calif.-based chipmaker said today it will spin off its network access division, which makes chips for the Internet infrastructure market. The remaining company will house all of Conexant's other chipmaking businesses including semiconductors for cell phones, modems and other consumer electronics. In after-hours trading, Conexant rose $6.44 to $43.59 on a volume of 534,900 and was the largest percentage gainer on the Nasdaq in post-market activity. Conexant rose $3.31 to $37.06 during regular trading hours. Business News - updated 7:03 PM ET Sep 13 Wednesday September 13 7:03 PM ET Conexant to Spin Off Internet Co. NEWPORT BEACH, Calif. (AP) - Conexant Systems Inc. (NasdaqNM:CNXT - news) announced Wednesday that it will spin off its business that makes software and semiconductors used to operate the Internet into a new, fully independent company. The split will allow the remaining company to focus on developing chips and software for the rapidly growing market for Internet-ready mobile phones and broadband devices for the home. Such devices include cable and satellite set-top boxes and high-speed Internet modems. ``We have created two very strong semiconductor businesses targeting markets that are quite different in many respects,'' William Decker, Conexant's chairman and chief executive officer, said during a conference call with industry analysts. ``Creating two separate companies will unleash both to realize their full potential.'' Conexant shares rose $3.31 to $37.06 at the end of regular trading on the Nasdaq Stock Market Wednesday. Conexant plans to sell stock in the Internet infrastructure business in January. The public offering will be followed six months later by a tax-free distribution of remaining shares to Conexant shareholders. Stockholders probably would get one share of the new company for each share of Conexant, but details of the distribution still were being worked out, Decker said. Executives said they had not decided which company will retain the Conexant name, but the broadband and mobile phone company will keep most of the company's manufacturing facilities. Both companies will have headquarters in Newport Beach. Conexant, with revenues of about $2 billion per year, was created in 1998 in a spinoff by Rockwell International Corp. (NYSE:ROK - news) The personal networking business is expected to generate sales of more than $1.5 billion, or about 70 percent of all revenues, in the current fiscal year, the company said in a news release. Sales of Internet infrastructure equipment are projected to reach $550 million this year