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.