Maxim to Buy Dallas Semiconductor

Maxim Integrated Products Inc., a maker of semiconductors, agreed to buy Dallas Semiconductor Corp. for about $2.5 billion in stock to add communications and power-management chips. Dallas Semi’s power-management chips help devices such as cell phones conserve power and run cooler. Its chips also work as clocks and calendars in personal computers. The purchase puts the Dallas-based company in the hands of Maxim Chief Executive Jack Gifford, who analysts said is a well-regarded chief executive familiar with Dallas Semiconductor’s products. Sunnyvale, Calif.-based Maxim’s chips are used in devices such as cellular telephones and hand-held computers. Maxim will pay 0.6163 of a share, valued at $39.14 based on Friday’s close, for each Dallas Semi share, the companies said. Dallas Semi shares rose $9.44 to close at $36.25, while Maxim fell $6.44 to close at $60.06, both on Nasdaq. There are no plans to cut jobs, Gifford said.