Monday: National Semi to Buy Cyrix

Author:
Publish date:

Compiled by John J. Edwards III
Staff Reporter

Merger Monday ended with a post-close announcement that sets up a Merger Tuesday of trading reaction:

National Semiconductor

(NSM)

agreed to buy

Cyrix

(CYRX) - Get Report

in a $550 million stock deal. The companies said they plan to develop new chip technology for low-cost PCs and information appliances. Cyrix reportedly traded up 2 to 25 1/16 after hours.

Following

Intel's

(INTC) - Get Report

lead,

Advanced Micro Devices

(AMD) - Get Report

said it would cut chip prices by as much as 55%. Intel earlier said it would cut prices on its Pentium line by up to 57%.

The

American Stock Exchange

on Tuesday will begin trading five-year securities based on the new

Major 8 European Index

, a capitalization-weighted measure incorporating the top eight European indices. The market-index target-term securities, or MITTS, are from

Merrill Lynch

.

United Technologies

expects to be the target of one or more government-contracting investigations, the company said in a

Securities and Exchange Commission

filing.

Gateway 2000

(GTW:NYSE) said its president and chief operating officer, Richard Snyder, is leaving the company to head an entrepreneurial venture capital fund but will remain on the board. The company said it has started looking for a replacement.

A

Food and Drug Administration

panel rejected a heart laser system from

PLC Systems

(PLC) - Get Report

for the treatment of chronic chest pain.

Chrysler

(C) - Get Report

confirmed a

Toledo Blade

report that it plans to build a $1.2 billion assembly plant in Ohio. The state offered Chrysler more than $100 million in assistance.

For information on Monday's market activity, see the

Market Roundup.