From today's NY Times




In an Expected Revamping, Agilent Plans a Buyback


By
<http://query.nytimes.com/search/query?ppds=bylL&v1=ANDREW%20ROSS%20SORKIN&fdq=19960101&td=sysdate&sort=newest&ac=ANDREW%20ROSS%20SORKIN&inline=nyt-per>ANDREW
ROSS SORKIN and
<http://query.nytimes.com/search/query?ppds=bylL&v1=JOHN%20MARKOFF&fdq=19960101&td=sysdate&sort=newest&ac=JOHN%20MARKOFF&inline=nyt-per>JOHN
MARKOFF
Published: August 15, 2005

<http://www.nytimes.com/redirect/marketwatch/redirect.ctx?MW=http://custom.marketwatch.com/custom/nyt-com/html-companyprofile.asp&symb=A>Agilent
Technologies plans to announce a major reorganization today, including the
sale of its semiconductor business, a spinoff of its chip testing unit and
a major share buyback program, executives close to the company said.

Over the weekend, Agilent, which was spun off from
<http://www.nytimes.com/redirect/marketwatch/redirect.ctx?MW=http://custom.marketwatch.com/custom/nyt-com/html-companyprofile.asp&symb=HPQ>Hewlett-Packard
in 1999, was working out the details of an agreement to sell the
semiconductor business to two private equity firms, Kohlberg Kravis Roberts
and Silver Lake Partners, for about $2.66 billion, the executives said.

The deal would be one of the largest purchases of a technology business by
private equity investors. The company also plans to spin off its chip
testing business as a separate company and buy back $4 billion of its
shares, the executives said.

The semiconductor business has struggled in recent years amid a downturn in
technology spending. Reports of Agilent's interest in selling the division
first surfaced in June after Young K. Sohn, a senior vice president and
former president of the semiconductor products group, left the company. No
reason was given for his departure.

Agilent was spun off from Hewlett-Packard as part of a corporate
reorganization. But the company, which is based in Palo Alto, Calif., and
has about 28,000 employees worldwide, is close to the roots of the original
Hewlett-Packard, which was founded by two Stanford graduates in the 1930's
to make testing and measurement equipment for the electronics industry.

In its annual report, Agilent said its chip business improved in 2004, with
revenue growing 27 percent over 2003. For the year, the division had a
profit of $166 million on sales of $2.02 billion.

The division employed about 6,800 people as of last year. It makes chips
for mobile phones, printers and PC peripherals. The business is also part
of a joint venture, Lumileds, with
<http://www.nytimes.com/redirect/marketwatch/redirect.ctx?MW=http://custom.marketwatch.com/custom/nyt-com/html-companyprofile.asp&symb=PHGZF>Philips
Electronics, that develops and sells light-emitting diodes.

The division also has a smaller business that makes networking products for
high-speed data communications.

Agilent's semiconductor unit has generally had lower profit margins than
the company's core testing and measuring business.
c

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