September 14, 1999
LOS ANGELES (AP) -- Motorola Inc. was expected to announce plans to acquire General Instrument Corp. this week in a $9.5 billion, all-stock deal, the Los Angeles Times reported Monday.
Motorola, a top manufacturer of cellular phones, high-speed modems and chips that drive cable TV converter boxes, is planning to capitalize on existing retail infrastructure, the newspaper said, citing sources close to the transactions.
General Instrument, the biggest supplier of TV converter boxes and a top maker of high-speed modems to the cable industry, would acquire a partner for its retail distribution operation under the proposed deal, the Times said.
The news follows months of takeover speculation on Wall Street about General Instrument of Horsham, Pa. The plan could spur a consolidation among cable suppliers that would mirror the concentration over the last year among the nation's cable television operators, the Times said.
Those operators now qualify for bulk discounts on the cable equipment that the Schaumberg, Ill.-based Motorola and General Instrument make.
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