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3Dfx still tipped to buy S3

Speculation mounts big time despite UMC money

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Sources close to 3Dfx emphasised today that the company is still interested in buying up S3, despite money the latter received yesterday from Taiwanese foundry UMC. In a tidying up operation, S3 will receive one UMC share for every one of its 252 million shares of USC stock. That places S3's capitalisation at an estimated $500 million. While 3Dfx capitalisation is around $250 million, there is an extra $600 million of STB capitalisation in the pot. Our sources say the talks between S3 and 3Dfx are now on, "with a vengeance". ®

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