3Dfx still tipped to buy S3

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". ®