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

To: Jock Hutchinson who wrote (17125)	2/22/1999 2:53:00 PM
From: patrick tang	Read Replies (3) \| Respond to of 25814

Forget about wounds - how is LSI going to recover the $100M, less alone make money out of it??? Symbios, front end technology + commanding market position for 1X sales. SEEQ???? 5X sales????? What has SEEQ got? Have they got one good chip or two??? If two, probably takes $500K and 4 months to design those from scratch!! Customer base??? What customer base has SEEQ got?? Technology?? What technology?? Sounds like there's a lot of something that we don't know about, possibly including things that may have nothing to do with enhancing shareholder values. Really scratching my head on this one.... (Example of this kind of deal may include IDT buying Quality - both Carl Berg companies, but LSI buying SEEQ? for fat $100M???) patrick

To: Jock Hutchinson who wrote (17125)	2/22/1999 4:30:00 PM
From: Moonray	Read Replies (1) \| Respond to of 25814

More: LSI Logic to Acquire SEEQ for $100 Million in Stock (Update2) (Adds purchase is LSI's third since 1977 in second paragraph, background in third paragraph. Updates share prices.) Milpitas, California, Feb. 22 (Bloomberg) -- LSI Logic Corp., a maker of specialty semiconductors, agreed to buy network chip designer SEEQ Technology Inc. for about $100 million in stock to take advantage of rising use of the Internet. LSI said it will exchange 0.1095 share for each SEEQ share, or 47 percent more than Friday's close. The purchase, LSI's third since 1997, is expected to add to earnings after it is completed in the second quarter ending June 30. Milpitas, California-based LSI is broadening its line of chips for Internet communications as networking-equipment makers demand faster products for their gear. Networking chip sales are expected to rise twice as fast as sales of microprocessors during the next three years. ''SEEQ has good technology for high-speed networking and this will only help LSI in that market,'' said Mark Edelstone, a Morgan Stanley Dean Witter analyst in San Francisco, who rates LSI an ''out perform.'' Expanding Internet use is boosting sales of LSI's semiconductors to telecommunications and networking companies such as Cisco Systems Inc. and Cabletron Systems Inc. Acquiring SEEQ, which had 1998 revenue of $28.1 million, will allow LSI to broaden its line of Internet-driven networking products, Chairman and Chief Executive Wilfred Corrigan said in a statement. LSI, which had 1998 sales of $1.49 billion, said the ratio of its shares for SEEQ shares may be adjusted. SEEQ has 37.3 million shares outstanding, and LSI said it will issue new shares for the acquisition. Fremont, California-based SEEQ has 72 employees, said LSI spokesman Kevin Brett. He said there will be no charges connected with the acquisition, and he declined to comment about any possible job cuts. Since SEEQ does not make its own chips, eventually it will transfer its chip making requirements to LSI's new plant in the Portland, Oregon, suburb of Gresham, Brett said. Chipmakers such as LSI, which also makes chips for Sony Corp.'s PlayStation video-game system, struggled last year with a worldwide slowdown in demand that led to falling prices and lower profits. Previous LSI acquisitions include Mint Technology Inc. in 1997 and last year's $760 million purchase of Symbios Inc. LSI shares rose 1 1/8 to 28 3/8 midafternoon trading. SEEQ rose 1/2 to 2 17/32 in trading of 1.7 million shares, more than five times the three-month average. o~~~ O