The United States IRS has issued a favorable ruling on the merger. DSP Group expects to complete the merger in the third quarter.
DSP Group (Nasdaq: DSPG) announced today that the final pre-condition for the merger of Ceva with Parthus (Nasdaq: PRTH, LSE: PRH) had been met. Ceva is a wholly owned subsidiary of DSP Group.
Last month, DSP Group said receipt of a favorable ruling from the United States Internal Revenue Service was the only remaining pre-condition of the merger.
Today, DSP Group said the IRS had ruled that the contribution of the DSP’s licensing business to Ceva and the distribution of the shares of Ceva to DSPG shareholders would be treated as a tax-free transaction for US federal income tax purposes.
DSP Group now expects that formal documentation related to the merger will be dispatched to Parthus shareholders in early August 2002, with completion of the merger expected during the third quarter of 2002.
DSP Group develops digital signal processing cores for low-power devices. Its shares closed on Friday at $17.50 on Nasdaq.
Published by Globes [online] - www.globes.co.il - on 15 July, 2002