Buyer Being Sought for Stake in AST Research
AST Research Inc. confirmed Thursday that it is in discussions with South Korean consumer electronics maker Samsung Electronics Co. and others about selling a minority stake in the company.
The personal computer manufacturer did not identify the other parties, and said it will give no further details while negotiations are continuing.
Analysts have said that a Samsung investment in AST would make sense for both sides. Samsung, based in Seoul, sells memory chips and other components to AST but has never managed to capture a significant share of the U.S. market for its own notebook computers.
AST, analysts say, could use a cash infusion. The company posted a loss for its latest quarter and has had difficulty integrating its worldwide operations while battling price cuts by larger competitors such as IBM and Compaq Computer.
Any alliance would include a “potentially significant” minority investment and possible strategic business partnerships, AST said.
Separately, the company said Thursday that its AST Computer unit and Texas Instruments Inc. have agreed to license each other’s personal computer patents in a settlement of all lawsuits between the two. Under a six-year agreement, AST will pay royalties periodically to Texas Instruments. No other details were disclosed.
Texas Instruments’ patents relate to the way keyboards and printers interact with the processing systems of PCs. AST’s patents relate to the construction of PCs.
In January, 1994, AST filed a lawsuit against Texas Instruments, alleging breach of contract and antitrust practices. It also challenged certain Texas Instruments patents and alleged infringement of its own patents. Texas Instruments countersued in August.
Analyst Gerry Moore at Cowen & Co. said AST will be the 13th computer company that pays royalties to Texas Instruments. But analysts said they do not think the payments will be significant.
In Thursday’s Nasdaq trading, AST’s stock gained 12.5 cents a share to close at $16.875. Texas Instruments rose $3.375 to $78.375 on the New York Stock Exchange.
