|Conexant to buy GlobespanVirata for 14% premium |
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Conexant to buy GlobespanVirata for 14% premium (GSPN, CNXT)
By Tomi Kilgore
NEW YORK (CBS.MW) - Conexant Systems (CNXT) announced an agreement to acquire GlobespanVirata (GSPN) , creating a company with a combined market value of $2.8 billion. Under terms of the deal, Conexant will exchange 1.198 shares of its stock for each GlobespanVirata share outstanding. Based on Friday's closing prices, the deal values GlobespanVirata $7 a share, or a 14 percent premium. With 138.5 million diluted GlobespanVirata shares outstanding at the end of September, the deal values the chip company at approximately $969.5 million. Upon completion of the transaction, which is expected to be in the first quarter of 2004, Conexant will own 62.75 percent of the combined company. Conexant shares closed Friday down 25 cents at $5.84 and GlobespanVirata fell 82 cents to $6.15.