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Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?

To: MileHigh who wrote (8736)	10/16/1998 10:26:00 PM
From: Gary Wisdom	Respond to of 93625

Here's the front page blurb on the deal from WSJ Interactive Edition posted after the market close. Just more fuel to the fire I hope. Intel Agrees to Buy a 6% Stake In Micron Tech for $500 Million An INTERACTIVE JOURNAL News Roundup Intel Corp. agreed to pay $500 million for a 6% stake in memory-chip maker Micron Technology Inc. The Micron investment, which has been rumored for months, comes amid signs of a more stable market for memory chips. Intel, which makes microprocessors -- the "brains" of computers -- has said in the past that it needs to ensure there is enough memory-chip capacity to sustain the personal-computer industry. During the past year, memory-chip prices fell 60%, Micron said, after falling 75% a year earlier. The persistent price weakness stemmed largely from a glut of memory-chip factories coupled with slowdowns in demand in Asia. In June, Texas Instruments Inc. agreed to sell its struggling memory-chip business to Micron, taking a 12% stake in Micron as part of the deal. Intel, Santa Clara, Calif., said Friday that its investment will support Micron's development of next generation memory products and enhance its position in the DRAM industry. Intel hopes its investment will also drive growth in the PC industry as a whole by accelerating the adoption of Direct RDRAM, a high-speed memory interface technology developed by Rambus Inc. Micron, based in Boise, Idaho, expects to have Direct RDRAM products ready to ship by the third quarter of 1999. Shares of Intel lost 81.25 cents to $83.75 and Rambus closed unchanged at $61.50, both on the Nasdaq Stock Market. Micron added 25 cents to $32 in composite trading on the New York Stock Exchange.