| Title: | Objective Analysis Alert - Intel & ST Create New Flash Company |
| Price: | Free - for registered users. |
| Publication Date: | May 22, 2007 |
| Source: | Objective Analysis |
| Author: | Jim Handy |
| Abstract: | Intel and ST announced their intention to spin off their flash businesses into a new company which merges the two. This Alert examines and analyzes this move. |
| Brief Excerpt: | ...STMicroelectronics and Intel finally announced a jo int venture that had been rumored for weeks. With Francisco Partners, a private equity f irm, the two companies will create a new jointly-owned company in the second half that c ombines Intel s NOR business and ST s NAND and NOR businesses. What they Said The new company will be owned ##.#% by ST, ##.#% by Intel, and #.#% by Francisco Partners. ST will receive $###M and Intel $###M in addition t o their equity stake for their flash businesses. Francisco will invest $###M. The company will purchase both ST s NAND and NOR busin esses, but only Intel s NOR business. The relationship with Hynix will continue, with the new company assuming ST s option to buy back their full ##% share in the Hyni x/ST Wuxi JV fab. They intend to exercise this option as profits return to the company. (ST recently sold a portion of this back to Hynix leaving ST with only a ##.#% share.) Their hope is to see profits return by the... |
| Word Count: | 1159 |
| Length: | 3 Pages |
| Document ID: | Alert-2007-05-22 |
| Industry: | Semiconductors |
| Format: | 
Adobe Acrobat
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