Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (1) | Ignore Thread Prev | Next
Author: newsreporter Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 2506  
Subject: National Semiconductor acqusition Date: 4/5/2011 2:17 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Texas Instruments to Acquire National Semiconductor for $6.5 Billion
http://goo.gl/IsyAS


Today, TI announced it will acquire National for $6.5 billion, representing a 77 percent premium over the $3.4 billion market cap it had as of the close of today’s regular trading. TI will pay $25 a share, nearly $11 north of the $14.07 at which National shares closed.

In a company statement announcing the deal, TI CEO Rich Templeton described the deal as being about “strength and growth.” He said National had done a good job boosting its profitability and reining in expenses, and that the combination will, upon the close, boost TI’s earnings per share.

TI specializes in wireless chips sold into mobile phones while National specializes in analog chips. TI is in the analog chip business too and has 30,000 analog products in its portfolio, which will now be supplemented by the 12,000 analog products that National sells. In one go, analog products will become more than 50 percent of TI’s business.

Another key factor: National’s manufacturing prowess. It owns chip factories–usually referred to as “fabs”–in Maine, Scotland and Malayasia, and TI says it will continue to operate them.

...

TI expects to fund the transaction with a combination of existing cash balances and debt. As of December 31, TI had about $3 billion in combined cash and short-term investments, and no long-term debt. TI also had access to a variable-rate revolving credit facility that gives it access to a combined $1.9 billion until August 2012; I’m presuming that the remaining $1.5 billion or so will be borrowed.

...

Investors seem cautiously optimistic about the deal. TI shares are up slightly in after-hours trading. National shares are naturally soaring by 70 percent to catch up with the valuation of the deal.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (1) | Ignore Thread Prev | Next

Announcements

Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement