Silicon Graphics Inc plans to sell the 85% of its MIPS Technologies Inc unit it doesn’t own in stages including additional public offerings by the end of September next year. The 85% of MIPS stock it currently holds is worth around $932.5m at yesterday’s closing price of $33.12. SGI will maintain control of MIPS’ board during this period. MIPS is to convert each share of common stock to a newly-created Class A of common stock. SGI will convert each Class A share to a Class B share. Class A stockholders will elect 20% of MIPS’ board, or not less than one director while Class B shareholders – SGI – elect the rest.
