Digital, selling a chip, agrees to buy into Olivetti

Article Abstract:

DEC will pay more than $300 million over the next three years to acquire 10 percent of Ing. C. Olivetti & Co. Olivetti will use DEC's Alpha reduced-instruction-set computing (RISC) microprocessor in its microcomputers. This will give DEC an much-needed boost against its competitors, which are also marketing RISC products. Under the acquisition agreement DEC will buy 20.3 million shares, or 4 percent, of Olivetti common stock for $140 million in Jun 1992, then another 4 percent for the same price by the end of 1994 and 1.89 percent on the open market by Jun 1993. Some industry analysts believe DEC, which has suffered two consecutive quarters of losses, paid too much in the deal.

Prepackaged software, Usage, Microprocessor, CPUs (Central processing units), Microprocessors, Olivetti S.p.A., Losses, RISC, RISC processors, DEC DECchip Alpha (Microprocessor)

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Digital plans to buy Philips computer unit

Article Abstract:

Digital Equipment Corp (DEC) agrees to buy most of the computer division of Philips Electronics NV. Philips's unit makes minicomputers, computer networks and automated bank systems. No financial details of the deal, which is to be completed by Oct 1, 1991, are revealed. DEC plans to absorb 7,000 Philips employees, and this comes at a time when DEC plans to lay off some of its own employees. The deal is viewed as a move by DEC into retail banking. DEC's stock is up 62.5 cents on Tuesday, Jul 23, 1991, closing at $67.625. Philips's stock is down 12.5 cents, closing at $16.50.

Koninklijke Philips Electronics N.V., column, Computer Industry, Stock

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