Freescale Semiconductor Inc., Motorola Inc.’s former semiconductor subsidiary, became a free, independent company following the completion of the spin-off.
As a result, Motorola issued its shareholders 0.110415 of a share of Freescale Semiconductor Class B common stock for each outstanding share of Motorola common stock they owned.
“I want to welcome the new shareholders to Freescale who are joining us as a result of the spin-off,” said Michel Mayer, Freescale’s chairman and chief executive officer. “Freescale is combining the best aspects of our Motorola heritage with the competitive spirit and fresh vision of a new enterprise. We are excited to have these new investors with us as we move forward.”
Following the completion of the deal, Freescale becomes the third-largest independent semiconductor company in the United States. The company was inducted into the S&P 500 and the S&P 500 Index.
In other chip news, Intel Corp. increased its fourth-quarter expectations from around $8.6 billion to around $9.3 billion. The company said the increase was due to stronger-than-expected demand for its products worldwide.
Finally, France Telecom announced it sold its remaining 30 million STMicroelectronics shares in a block trade transaction. The shares represented 3.3 percent of STMicroelectronics’ share capital. France Telecom still owns 26.4 million shares underlying the bonds mandatorily exchangeable for STMicroelectronics shares due Aug. 6, 2005.
