Why I think LSI was NOT looking at VLSI, especially at 28.
point 1. vlsi @ 28 would have been 75%, or 565 million more than LSI paid for Symbios.
point 2. Symbios is barely related to what vlsi does.
note lsi comment: "This major acquisition reflects our strategy of further penetrating the high-end computing and storage markets,''
***If this is their strategy, why would they buy vlsi, who is "Targeting its offerings toward the wireless communications, networking, consumer digital entertainment and computing markets..."
remember, vlsi's computing products are 20% of revenues (see last conf call). And this is not a segment VLSI is actively developing.
In short, if you think LSI was deciding between Symbios and VLSI, you think LSI did NOT have a strategy in mind. Assuming LSI's STATED strategy, VLSI would NOT have been a candidate.
I don't doubt there was a bonafide rumour, but there are a lot of other
possible explanations if you consider that someone was trying to move
the stock. This seems way more logical given the above. Maybe
Beyer wanted to talk the stock up so his mom could get out before he
left...., I'm just making that up, but what else is a rumour?
I'm very interested in contrary points of view, but I'll not be trading
on unknown 'reliable sources', no offense intended.
I thought the takeover was bs at the time and I've seen no compelling
case to change my mind since then.
If you'd like to double check my figures/quotes, they are found below:
thanks,
-Kevin
biz.yahoo.com
LSI Logic will acquire Symbios, Inc., HEA's wholly owned subsidiary, for $760 million, including assumed liabilities, payable in cash.
Symbios, Inc. designs, manufactures, and markets client/server integrated circuits, cell-based application specific integrated circuits (ASICs), host adapter boards (HABs), and storage subsystems. The company, which had 1997 revenues of $620 million and operating income of $70 million before non- recurring charges, is a leader in the small computer system interface (SCSI) chip and the global disk and tape-drive electronics markets.
''This major acquisition reflects our strategy of further penetrating the high-end computing and storage markets,'' said Corrigan. ''The products manufactured by Symbios complement the offerings we already provide to LSI Logic customers. This strategic fit solidifies LSI Logic's position as a top worldwide producer of system-on-a-chip solutions and establishes LSI Logic as a leader in the global storage market.''
Symbios, Inc., headquartered in Fort Collins, Colorado, creates solutions for moving and storing information. The company focuses on developing partnerships with its customers, including original equipment manufacturers and resellers in the storage, server, peripherals, and communications markets.
vs VLSI
biz.yahoo.com
from last earnings release, note shares outstanding of: 47,357,000. Multiply this by 28 and we get a price of 1,325,996, or 565 million more than LSI paid for Symbios, or 75% more.
VLSI Technology Inc. designs and manufactures System-Level Silicon(TM) integrated circuits based on its FSB(TM) functional system blocks(TM) library. Targeting its offerings toward the wireless communications, networking, consumer digital entertainment and computing markets...
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