Texas Instruments divests last of Micron holdings

news
Dec 2, 20031 min

Sales will increase TI's net income by $125 million for the fourth quarter

Chip maker Texas Instruments Inc. (TI) has sold the remaining shares it held in memory chip company Micron Technology Inc., the company said Monday.

Dallas-based TI acquired the Micron stock in connection with the sale of its semiconductor memory business unit to Micron in 1998. Late last month, TI sold about 3.2 million shares of Micron and Monday sold 29.1 million shares, the company said.

As a result of the sales, TI said it will recognize a gain of $97 million in its fourth-quarter results. Additionally, TI said it will recognize a previously reserved tax benefit of $62 million in its fourth quarter associated with a write-down of Micron common stock in the fourth quarter of 2002. The combined effect will be an increase of $125 million to the company’s net income for the fourth quarter, TI said.

TI has scheduled a mid-quarter financial update for Monday, December 8.