17:34 ET WRAP: BROADCOM TO BUY NEWPORT COMMUNICATIONS FOR $1.24 BILLION
By BridgeNews New York--Aug. 14--Broadcom Corporation, the provider of
integrated circuits enabling high speed broadband communications, said Monday it
has agreed to buy optical communications chip maker NewPort Communications Inc.
in a stock deal worth $1.24 billion, extending Broadcom's reach in the
fast-growing fiber optic communications market. Under the deal, Broadcom's 13th
since June last year, the Irvine, Calif.-based company will issue about 5.5
million shares in exchange for all of privately held NewPort's preferred and
common stock. In morning trade, shares of Broadcom rose $7.50, or 3.3%, to
$232.5625. The proposed acquisition comes a week after Broadcom said it would
buy Silicon Spice Inc., a developer of semiconductor technology, for about $1.2
billion. A week earlier it agreed to buy Altima Communications Inc., a maker of
networking circuits, for about $533 million. "The acquisition of NewPort
Communications...is not only synergistic with our 10-gigabit ethernet technology
but is also complementary to the communications processor technology that we are
acquiring through our merger with Silicon Spice Inc.," Broadom President and
Chief Executive Officer Henry Nicholas said. "Together these acquisitions will
provide Broadcom with a powerful platform to address the rapidly growing wide
area networking marketplace." NewPort, also based in Irvine, was founded in 1996
by Armond Hairapetian and Lorenzo Longo, both formerly of Connexant Systems Inc.
Lucent Technologies Inc., Sumitomo Electric Industries Ltd. and Cisco Systems
Inc. are customers of NewPort and also own stakes in the company. Broadcom said
it will take an unspecified third-quarter charge for research and development
costs related to the acquisition. End
[slug: BROADCOM-NEWPORT] [symbols:US;BRCM] [symbols:US;BRCM]
The Bridge ID for this story is 05972
(c) Copyright 2000 FWN
17:34 ET GO-KARTS, EYE AND EAR DROPS RECALLED
WASHINGTON, Aug. 14 (UPI) -- The Consumer Product Safety Commission Monday
announced the recall of 91,000 go-karts and the Food and Drug Administration
warned Rich's MSM Eye & Ear Drops may be contaminated with yeast and a bacteria
that can cause sight-threatening injuries.
17:34 ET AMD UNDERCUTS INTEL WITH LATEST CHIP PRICES
Aug 14, 2000 (Tech Web - CMP via COMTEX) -- Advanced Micro Devices Inc. finally
agreed to reduce the price of its 1-GHz Athlon microprocessors, introducing its
1.1-GHz Athlon in the process.
17:34 ET FORD: FIRESTONE PLANT HAD QUALITY PROBLEMS
DETROIT, Aug. 14 (UPI) -- Tires made at the Firestone plant in Decatur, Ill.,
during the mid-1990s had numerous quality control problems, according to data
released by Ford Motor Co. Monday.
17:34 ET NEWS CORP. TO ACQUIRE CHRIS-CRAFT
New York, Aug 14, 2000 (123Jump via COMTEX) -- Rupert Murdoch's News Corp.
(NYSE:NWS), owner of the Fox Television Network, announced Monday that it will
acquire Chris-Craft (NYSE:CCN) and subsidiaries for about $5.35 billion, about
$2.13 billion in cash and approximately 73 million American depositary receipts
14:49 ET SITHE TO SELL 49.9% OF NORTH AMERICAN ASSETS TO PECO ENERGY
NEW YORK, Aug 14, 2000 /PRNewswire via COMTEX/ -- Sithe Energies, Inc.
announced today that it has entered into a definitive agreement with PECO Energy
Company (NYSE: PE) under which PECO will acquire 49.9% of Sithe North America.
Upon completion of the agreement, the remaining 50.1% of Sithe North America
14:49 ET EU APPROVES FRANCE TELECOM'S ACQUISITION OF BRITAIN'S ORANGE
BRUSSELS (Aug. 14) XINHUA - The European Union (EU) said Monday that it has
granted regulatory clearance to France Telecom's acquisition of the sole control
over the British mobile phone operator Orange.