AI
Tuesday, December 17, 2013 1:24:46 PM
Storage should see more buying
and MCP is showing a little dead cat bounce
Avago Technologies Ltd. (AVGO:US), a chip manufacturer that began as a unit of Hewlett-Packard Co. (HPQ:US), agreed to buy LSI Corp. (LSI:US) for $6.6 billion, gaining semiconductors for disk drives and other electronics.
Avago will pay $1 billion in cash and use a $4.6 billion bank loan, the companies said in a statement today. Silver Lake Partners, a private-equity firm that helped acquire Avago before its initial public offering in 2009, will provide a $1 billion investment toward the all-cash purchase.
LSI and Avago may be combining to gain more resources as the cost of designing and building semiconductors rises, potentially heralding a wave of deals in the industry, said Suji De Silva, an analyst at Topeka Capital Markets Inc. Packaged together, some of the companies’ storage products may be more attractive to large Internet data-center operators, such as Google Inc., he said.
and MCP is showing a little dead cat bounce
Avago Technologies Ltd. (AVGO:US), a chip manufacturer that began as a unit of Hewlett-Packard Co. (HPQ:US), agreed to buy LSI Corp. (LSI:US) for $6.6 billion, gaining semiconductors for disk drives and other electronics.
Avago will pay $1 billion in cash and use a $4.6 billion bank loan, the companies said in a statement today. Silver Lake Partners, a private-equity firm that helped acquire Avago before its initial public offering in 2009, will provide a $1 billion investment toward the all-cash purchase.
LSI and Avago may be combining to gain more resources as the cost of designing and building semiconductors rises, potentially heralding a wave of deals in the industry, said Suji De Silva, an analyst at Topeka Capital Markets Inc. Packaged together, some of the companies’ storage products may be more attractive to large Internet data-center operators, such as Google Inc., he said.
My post is for my entertainment, do your own DD before pushing your
buy/sell buttons
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