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 : LSI Corporation -- Ignore unavailable to you. Want to Upgrade?

To: frank/fla. who wrote (13292)	6/29/1998 3:30:00 PM
From: DWB	Respond to of 25814

RE Symbios buyout, from the wires... Symbios Purchase Gives LSI New Mkts, But No Short-Term Gains NEW YORK -- It's a deal that will make LSI Logic Inc. (LSI) bigger and broader. But don't look for short-term gains. Analysts agreed that LSI Logic Corp.'s (LSI) $760 million cash purchase of Hyundai Electronics America's Symbios unit was a good acquisition, one that stands not only to bulk up the Milpitas, Ca.-based manufacturer of parts for electronic devices, but also to give it access to new markets. And though the sale comes less than a week after Hyundai pulled out of nearly the same deal with Adaptec Inc. (ADPT) - citing concerns that the U.S. Federal Trade Commission would see the deal as providing Adaptec with a U.S. monopoly - it should not be viewed as hasty on LSI's part, analysts said. "You can imagine when Adaptec and Symbios announced their deal, LSI may have felt like they missed out on an opportunity," said Clark Westmont, an analyst with NationsBanc Montgomery Securities. "Now that the Adaptec deal fell though, LSI didn't waste any time. They didn't leave any breathing space for a competitor to come in. I think they didn't want to miss an opportunity twice." The addition of Symbios - an information technology company that specializes in solutions for moving and storing data - will make LSI the second largest standard cell supplier in the world, said Hans Mosesmann, an analyst for Prudential securities. It will also provide LSI with access to the high-end computing and mass-storage markets, according to analysts. "I think it makes a lot of sense," Mosesmann said. But that doesn't mean the company will see an immediate return on its investment. Analysts agree that while the deal offers long-term benefits for LSI, short-term gains are not in the picture, given such factors as the situation in the semiconductor and the mass storage sectors. "At the margin it is a good deal," said Nimal Vallipuram, an analyst with Bear Stearns. "The catch is putting them both together.'