Cypress Semiconductor plans spinoff of SunPower shares

By Lisa Kerner

Charlotte, N.C., July 17 - Cypress Semiconductor Corp. will pursue the tax-free distribution of its SunPower Corp. class B common shares to Cypress shareholders, it was announced on Thursday.

The company said it expects to complete the spinoff by the end of 2008 pending final approval by Cypress' board of directors.

In addition, the board is considering an adjustment to outstanding employee equity awards to preserve their value, as well as a possible tender offer for all or a portion of the company's outstanding 1% convertible senior notes due September 2009.

Cypress also may dispose of a portion of its class B common shares of SunPower prior to the spinoff's close.

In April, the San Jose, Calif., semiconductor manufacturer received a favorable ruling from the Internal Revenue Service related to a potential spinoff transaction.

SunPower is a Cypress subsidiary that designs and manufactures solar electric systems. It is also based in San Jose, Calif.

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