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 : Texas Instruments - Good buy now or should we wait? -- Ignore unavailable to you. Want to Upgrade?

To: Charlie Smith who wrote (3793)	6/18/1998 9:00:00 PM
From: pat mudge	Read Replies (3) \| Respond to of 6180

From Reuter's: <<< TI to become Micron's largest holder Reuters Story - June 18, 1998 18:40 SAN FRANCISCO, June 18 (Reuters) - Texas Instruments Inc. will become the largest shareholder of Micron Technology Inc. with an initial 12 percent stake as a result of the estimated $800 million sale of TI's memory chip business to Micron. Micron will issue 28.9 million common shares to Texas Instruments as part of its deal, which is equivalent to about 12 percent of the Boise, Idaho-based memory chip maker. The companies said on a conference call that, including the convertible notes that will also be issued, TI's stake will rise to about 16-17 percent of Micron, once the notes are converted. The notes are convertible into 12 million shares. The companies said the $800 million purchase price was calculated based on the prices of the 28.9 million shares of Micron common stock at today's market value and the amount of debt that Micron will assume from TI's Italian subsidiary. The companies said the value of the convertible and subordinated notes that are also part of the deal were not involved in the final purchase price, because the notes are offset by $750 million in financing that TI will provide to enable Micron to move its technology into TI's memory plants. Micron also said it does not expect any increases in its research and development spending to result from the deal.>>>