Rambus Stock On A Roll After Settlement With Hitachi

Sat., June 24, 2000

Shares of Rambus Inc. soared again Friday after the maker of interfaces for computer chips settled a patent-infringement lawsuit filed against Hitachi Ltd. by granting the Japanese electrical machinery maker certain patent licenses.

Stock of the Mountain View, Calif.-based company rose $17.56, or 18 percent, to close at $114.68 giving the shares a total gain of 551 percent since the beginning of the year.

The two companies signed a settlement agreement late Thursday giving Hitachi certain patent licenses for Rambus’ synchronous dynamic random access memory, or DRAM, devices and related products and terminating litigation against Hitachi.

In January, Rambus alleged that Hitachi infringed on Rambus’ patents for synchronous DRAM devices and Rambus filed lawsuits against Hitachi and Hitachi Semiconductor Inc. in the United States and Hitachi’s subsidiary in Germany.

Analysts had expected that Rambus, which makes interfaces to accelerate the speed of memory in computers and other gadgets, would see a favorable ruling in the lawsuit after Toshiba Corp., Japan’s second-largest manufacturer of microprocessors, agreed to pay royalties for the company’s memory technology on June 16.

Some stocks that were moving substantially or trading heavily Friday.

NYSE

International Home Foods Inc., up $5.25 at $20.625 ConAgra Inc., down $1.375 at $18.50

Food conglomerate ConAgra is buying International Home Foods, the maker of Chef Boyardee pasta products, Pam cooking spray and Gulden’s Mustard, for $1.6 billion in cash and stock. ConAgra’s brands include such well-known names as Butterball, Healthy Choice, Orville Redenbacher and Swiss Miss.

Johns Manville Corp., up 93.75 cents to $13.25.

Building-product manufacturer Johns Manville has agreed to a $2.4 billion buyout offer from an investment group led by affiliates of Hicks, Muse, Tate & Furst Inc. and Bear Stearns Merchant Banking.

CGI Group Inc., down $2.688 at $7.563

The information technology services company expects its third-quarter earnings to fall below Wall Street analysts’ estimates. The Canadian company attributed the shortfall to a post-Y2K slowdown in information technology purchasing, but said that it believes that the current softness in the market has bottomed out.

CSK Auto Corp., down $3.38 at $8

The company, which sells foreign and domestic automotive parts and accessories, expects its second-quarter earnings to fall before Wall Street analysts’ estimates. The shortfall was attributed to a reduction of organic growth, soft sales trends, higher interest rates and higher costs and softer sales associated with acquired automotive centers.

NASDAQ

Amazon.com Inc., down $8.125 at $33.875

Lehman Brothers fixed-income analyst Ravi Suria released a research note describing “extremely weak and deteriorating” credit at the online retailer.

Professionals Group Inc., up $6.859 at $22.859 Medical Assurance Inc., down 25 cents at $10.875 on the NYSE

The two companies agreed to merge to create Medical Professionals Assurance Inc., which would be the nation’s third largest medical malpractice insurance company.

Human Genome Sciences Inc., up $12.375 at $145.375

The biotechnology company received Food and Drug Administration approval to begin human tests of a protein that is one of the body’s primary natural weapons against infections.

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