STMicroelectronics was awarded $400 million in damages as a resolution of its law suit against Credit Suisse Securities USA that charged the brokerage unit of the Swiss investment bank with misleading Europe’s largest chip maker over its investment in auction-rate securities, according to a Bloomberg News report. The Credit Suisse unit must also pay Read the rest of this entry »
Spansion, the Sunnyvale flash-memory maker, chose to borrow $74.8 million of the $85 million available to it under an agreement with UBS, the Swiss investment banker that holds auction-rate securities that were worth $121.9 million when Spansion first bought them. The investment has a current estimated market value of $107.4 million, according to a filing Spansion made Monday.
Auction-rate securities (ARS) are typically typically corporate or municipal bonds with a long-term maturity horizon whose interest rates are reset periodically through auctions held as often as every week. The market for them has been frozen since February making it impossible for investors to access them for want of any buyers.
UBS has agreed to make good on the value of Spansion’s original investment by guaranteeing that it will buy the securities sometime between Read the rest of this entry »
Foundry Networks said Tuesday it managed to sell its portfolio of auction rate securities, netting an estimated $38.8 million in the process. The news opened the way for a special meeting of its shareholders to be held today to allow them to, finally, vote on the proposed sale of the company to Brocade Communications Systems.
The special dividend is scheduled to be paid on the date on which the merger is completed. If it should not be completed, Foundry says it will not pay the special dividend.
We’ve posted previously about the cold feet both parties seem to have developed about the transaction that was first proposed back in July.
Conceptus is the latest company to reach an accord with fund manager UBS over auction-rate securities Conceptus owns that are held by UBS, according to an SEC filing it made Tuesday afternoon.
Under terms of the deal, Conceptus will be allowed to sell its auction-rate securities to UBS for par value any time between June 30, 2010, and July 2, 2012. As of Nov. 30, the par value of the securities held by UBS for Conceptus was Read the rest of this entry »
Opti said it prevailed in an arbitration with Nvidia over its continued use of Opti’s “pre-snoop” technology, and is owed $3.75 million plus interest for Nvidia’s unpaid use of the intellectual property involved for the five quarters from Feb. 1, 2007, through April 30, 2008, according to a filing the company made with the SEC Tuesday.
The two companies had entered into a licensing agreement in 2007 as part of the settlement of a patent infringement claim Opti brought against Nvidia in 2004, according to Tuesday’s filing. The agreement called for Nvidia to make quarterly royalty payments of Read the rest of this entry »
Intevac, the Santa Clara supplier of equipment used to make data storage products and flat panel displays, said Citigroup agreed to supply it $20 million in credits secured by some of Intevac’s holdings in its Citigroup accounts, according to a filing with the SEC.
Like many companies looking for places to stash their cash, Intevac has made use of
investments known as auction-rate securities, which have been popping up in the news lately because of the lack of bidders at their auctions. ARS are typically corporate or municipal bonds with a long-term maturity horizon whose interest rates are reset periodically through auctions held as often as every week.
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