Cypress Semiconductor may tender for 1% convertibles with spinoff

By Jennifer Chiou

New York, July 17 - Cypress Semiconductor Corp. said that its board has authorized management to proceed with a spinoff to its shareholders of the class B shares of SunPower Corp. that are held by Cypress and in connection with the spinoff, it is considering a tender offer for all or a portion of its 1% convertible senior notes due September 2009.

The San Jose, Calif.-based semiconductor manufacturer previously announced that on April 16, it received a favorable ruling from the Internal Revenue Service related to tax issues in connection with a potential spinoff transaction.

Cypress added that its board contemplates adjusting outstanding employee equity awards in a manner intended to preserve their intrinsic value and it may dispose of a portion of its class B shares of SunPower prior to completion of the spinoff.

The proposed spinoff transaction is subject to final approval by the Cypress board.

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