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To: Ski who wrote (7905)	11/14/1997 5:05:00 PM
From: Mark Zavist	Respond to of 14577

Intel, Chips Deal Extended Again (11/14/97; 2:05 p.m. EST) By Kelly Spang, Computer Reseller News Intel has extended its offer to buy outstanding shares of Chips and Technologies stock yet again. The cash tender agreement for outstanding shares of Chips' stock is extended through Dec. 23, and the merger agreement between the companies is pushed out to Jan. 31, 1998, at which time either Intel or Chips can terminate the deal. As of Wednesday, slightly more than 14 million shares of common stock of Chips had been tendered in the offer, representing about 64 percent of the total outstanding stock. Under the agreement, Chips will be a wholly owned subsidiary of Intel, becoming integrated into the Intel Graphics Component Division. In the coming year, VARs will see Intel make more of a push into the graphics market with the delivery of its i740 desktop 2D/3D graphics accelerator, which will support the Accelerated Graphics Port. Select OEMs will see a closed-door demonstration of the chip, code-named "Auburn," at Comdex next week. Delivery is expected early into the new year, sources said. The merger would give Intel a stronghold on the graphics accelerator market for notebook computers, with Chips holding roughly 50 percent of the market share, according to analysts. Since the acquisition announcement in July between Intel and San Jose, Calif.-based Chips, the agreement has been pushed out several times. Initially the expiration date of the $17.50-per-share cash tender for all outstanding shares of Chips stocks was set to expire Aug. 28. An extension of the offer came after the Federal Trade Commission requested more information related to the deal, which is valued roughly at $416 million. The FTC launched a full investigation into Intel business practices in the middle of September. Additionally, several lawsuits have been filed against the two companies stemming from the deal. A preliminary agreement was reached in October in a shareholder suit filed in New Jersey days after the deal was announced. As part of the agreement, the merger agreement deadline was pushed to Nov. 30.