Advertisement

Conexant Shares Jump on Spinoff News

Share

Conexant Systems Inc. got a big boost as shares rose 42% one day after the Newport Beach chip maker said it would spin off its fast-growing Internet equipment division into a separate public company. Conexant stock climbed $15.56 a share to close at $52.63 in Nasdaq trading of 66.7 million shares--the most active issue on the stock market. The rise added about $3 billion to the company’s market value. The stock, however, is still far from its high in February of $124.42 a share. Conexant, one of the nation’s largest makers of communications chips, said late Wednesday that it will spin off its division that makes chips for switches and other equipment for the Internet.

Advertisement