Micron Weighs Sale Of Pc Business To Compaq

Micron Technology Inc. executives acknowledged on Friday that they have had preliminary discussions with Compaq Computer Corp. about its possible purchase of Micron Electronics Inc.

But, in a statement issued by both Micron Technology and Micron Electronics, they said the two Idaho companies “are not currently engaged in active discussions with Compaq regarding such an acquisition and no offer has been received.”

Micron Technology owns about two thirds of the Micron Electronics stock.

The statements were issued after J.R. Simplot, the largest individual shareholder and a board member of Micron Technology, told a Boise television station that Compaq was interested in buying Micron Electronics.

“If we want to sell, I think we have the opportunity,” Simplot said.

Industry insiders have been speculating in recent days about the prospect of a Micron Electronics purchase by Houston-based Compaq, the world’s biggest maker of personal computers that could still benefit from Micron Electronic’s PC distribution network.

On Thursday, Compaq moved to claim a larger share of the expanding market for Internet equipment by agreeing to pay $280 million for networking company Microcom Inc.

Compaq, based in Houston, also makes personal-computer servers, which manipulate and distribute data to PCs. The company wants a greater role in the burgeoning market for Internet and corporate intranet equipment, where it now trails Sun Microsystems Inc. and Digital Equipment Corp.