Texas Instruments has clarified the terms underlying the sale of its memory business to Micron Technology Inc. TI will receive approximately $800m in value for the assets transferred, while injecting $750m of its own cash reserves in the form of loans to ease Micron’s liquidity problems, not the $1.5bn figure that we reported last week. From Micron’s perspective though, its total debts will increase by $1.14bn due to the premium on repayment at maturity of the TI loan, and the assumption of $190m in TI debt. $740m of the TI loan is potentially convertible into Micron stock. In a separate announcement on Friday, TI also said it had replaced its old ‘poison pill’ shareholder rights plan, which expired on June 17, with an updated scheme. The anti-takeover defenses are triggered if an outside party acquires ownership of 20% or more of the company’s common stock. A spokesperson for the company told Reuters that the plan had no connection with the sale of assets to Micron and was not in response to any known takeover plans.
