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Intel to buy DSP Communications

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CIOL Bureau
New Update

BANGALORE: Intel Corp has agreed to buy wireless telephone

chipmaker DSP Communications Inc in a $1.6-billion deal. Under the terms of the

deal, Intel will pay $36 in cash for each share of DSP, which is a $8 premium

over DSP’s Wednesday closing price of $28. The deal comes just two days after

Intel reported third-quarter earnings of 55 cents a share.

DSP’s board of directors has already approved the deal, which is

conditional upon DSP shareholders offering a majority of shares in the $36

tender offer. DSP’s current and former chief executive officers have already

tendered their shares, the companies said. The companies said in a statement

they did not anticipate any immediate changes to their respective product lines

as a result of the deal. DSP will also continue to deliver products under

existing agreements.

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