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Technology Stocks : COMS & the Ghost of USRX w/ other STUFF -- Ignore unavailable to you. Want to Upgrade?


To: Moonray who wrote (15388)5/13/1998 11:19:00 AM
From: David Lawrence  Read Replies (4) | Respond to of 22053
 
Wow! MOT --> CPATH deal dies. MOT to close facility. Another one bites the dust.


HUNTSVILLE, Ala., May 13 /PRNewswire/ -- Motorola's Information Systems
Group (ISG) today announced that the sale of its Transmission Products
Division (TPD) will not be completed despite an earlier announcement that
Motorola had entered into an agreement with an international group of
investors.
Motorola is disappointed that the investor group did not complete the
purchase as agreed. The lead investor stated his group was unable to
proceed further with this transaction "due to a lack of cohesion on the
part of the Buyer's Group." This transaction would have resulted in the
launch of CPATH, Inc. Without the participation of this investor, the
group could not complete the purchase as agreed.
Because of this unexpected development, Motorola is now forced to close
its facility in Huntsville, Alabama during July 1998.
"We will offer
assistance for our people who have worked with us during this difficult
period," said Rick Lane, general manager of TPD. "Motorola will provide
resources for all associates, including relocation opportunities,
outplacement assistance and counseling."
Motorola will transfer customer service and support for its SURFR
Series -- analog and digital modem product lines to ISG's headquarters in
Mansfield, Mass. and will make every effort to make this transition
invisible to its customers. Existing commitments regarding warranties and
customer programs will continue to be met.
Motorola's Information Systems Group (ISG) develops, builds and
markets solutions that help customers profit from the power of multimedia
business and personal communications. Product families include cable,
corporate and software modems and a broad range of internetworking
equipment. ISG is part of Motorola's Messaging, Information and Media
Sector (MIMS). ISG information is available on the world wide web at
www.motorola.com/isg.
Motorola is one of the world's leading providers of wireless
communications, semiconductors and advanced electronic systems, components
and services. Major equipment businesses include cellular telephone,
two-way radio, paging and data communications, personal communications,
automotive, defense and space electronics and computers. Motorola
semiconductors power communication devices, computers and millions of
other products. Motorola's 1997 sales were $29.8 billion.