In a filing with the US Securities and Exchange Commission, Intel Corp said it had sold its near 6% holding in San Jose, California-based chip maker VLSI Technology Inc for $97m. The 2.7 million shares were sold at the prevailing market price of $35.5 but despite the increased volume, the stock shrugged off the news and went on to trade above $36 the following day. The stake was originally taken out by Intel in 1992 as part of a co-development agreement for mobile communications chips. The joint effort concluded in 1995, prompting Intel to sell its then 5.4 million holding. This latest sale represents Intels divestiture of all outstanding warrants to purchase VLSI stock. VLSI is moving away from PC based chip manufacture and towards cellular phones, satellite televisions, and video games.
