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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: wlheatmoon who wrote (75401)	3/4/1999 5:38:00 PM
From: John Carragher	Respond to of 186894

Intel to Acquire Level One In a $2.2 Billion Stock Deal An INTERACTIVE JOURNAL News Roundup Intel Corp. agreed Thursday to acquire network-chip and telecommunications-gear maker Level One Communications Inc. in a stock deal worth about $2.2 billion. Under the terms of the agreement, each share of Level One stock would be exchanged for 0.43 shares of Intel stock, the companies said in a joint press release Thursday. At Intel's closing price Thursday, the deal values Level One at $48.75 a share, a substantial premium to the company's closing price Thursday. Shares of Level One fell $5.25 to $27.125 on the Nasdaq Stock Market Thursday, hurt by a downgrade of the company analyst of Tim Kellis Adams Harkness & Hill Inc. to "accumulate" from "strong buy" amid concerns over June quarter revenue growth. Intel's shares, meanwhile, slipped $1.3125 to $113.275 on Nasdaq. The deal was announced after the close of trading. A total of about 18.6 million Intel shares will be issued in the merger, including the presumed conversion of Level One's outstanding convertible subordinated notes into Level One common stock when permissible under their terms. The companies said they expect the merger to close by the end of the second quarter. "Today's announced merger extends our strength in networking and communications," said Craig Barrett, Intel's president and chief executive. "It provides us with the silicon building blocks necessary to supply the rapidly growing demands created by the Internet and e-commerce." Robert Pepper, Level One's president and CEO, will join Intel as vice president of the company's Network Communications Group and general manager of the Level One Components Division. The companies, which have worked together over the past year, said they don't anticipate any immediate changes to either of their product lines, adding that Level One intends to continue to use its existing manufacturing relationships and provide its products to customers under existing agreements. Level One is best known as a maker of integrated-circuit technology for the telecommunications industry, but its networking and DSL products have also attracted the attention of analysts and investors.