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GIC slips on Motorola talk
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September 13, 1999: 4:23 p.m. ET
Electronics giant may be close to buying cable TV maker for $10B
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NEW YORK CITY (CNNfn) - Motorola Inc. is negotiating to buy cable-television equipment manufacturer General Instrument Corp. for about $10 billion, the Wall Street Journal reported Monday.
Should the deal go through, it would unite one of the world's most recognizable brands in consumer electronics with the cable industry's top source for TV set-top boxes, the newspaper said.
Quoting people familiar with the talks, the Journal said that General Instrument stockholders will receive just over one-half of a Motorola share for each share of General Instrument common stock.
Motorola (MOT), a maker high-speed modems and cellular phones, reported strong second-quarter earnings, though it has struggled over the past year, taking a hit as one of the backers behind bankrupt satellite-phone maker Iridium.
A deal between Motorola and Horsham, Pa.-based General Instrument (GIC) would be the latest in a string of mergers in the cable-TV industry. Officials at Motorola and General Instrument declined to comment.
Motorola rose 1/16 to $98.75 a share while General Instrument lost 7/16 to $52.50, both on Friday.
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