Monday, December 04, 2006

Agere Being Acquired by LSI Logic

LSI Logic Agrees to Acquire Agere Systems for About $4 Billion in Stock
MILPITAS, Calif. (AP), Dec. 4

LSI Logic Corp. said Monday it will purchase rival chip and storage systems maker Agere Systems Inc. for $4 billion in stock.
Agere shareholders will receive 2.16 shares of LSI for each Agere share held, valuing Agere at $22.81 per share. The purchase price represents a 28 percent premium to Agere's Friday closing price of $17.79 on the New York Stock Exchange.
Agere shares rose $2.10, or 12 percent, to $19.89 in early trading on the New York Stock Exchange, where LSI shares fell $1.16, or 11 percent, to $9.40.
Upon closing, LSI will issue about 379 million shares to complete the acquisition. LSI shareholders will own 52 percent of the combined company, while Agere holders will own 48 percent.
The combined company will use the LSI Logic name and have about 9,100 employees. It will have combined revenue of $3.5 billion for the 12-month period ending Sept. 30, 2006. The companies together own a patent portfolio consisting of more than 10,000 issued and pending U.S. patents...read more: here