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Wednesday, January 15, 2014

Marvell says not in talks with shareholder KKR on a buyout, (NASDAQ: MRVL)

Marvell Technology Group Ltd on Wednesday said it is not in talks with KKR & Co on a major transaction such as a buyout, a little over two weeks after the private equity firm reported a 6.8 percent stake. The chipmaker made the disclosure in a filing with the U.S. District Court in Pittsburgh, where it is defending against a lawsuit by Carnegie Mellon University alleging patent infringement in connection with computer disk drives.On Tuesday, U.S. District Judge Nora Barry Fischer rejected Marvell's bid to cut $620 million from a $1.17 billion jury verdict against the company.Marvell, in its filing, rejected what it called Carnegie Mellon's concern that the KKR investment might herald "extraordinary corporate transactions" that could threaten the university's ability to collect a final judgment."In fact, Marvell has no present plans for an extraordinary corporate transaction (e.g., buyout, merger, reorganization or liquidation) and has not been in negotiations with KKR concerning such a transaction," it said.

Marvell Technology Group Ltd. (Marvell) is a fabless semiconductor provider of application-specific standard products. Shares of MRVL fell by 1.83% or $-0.29/share to $15.52. In the past year, the shares have traded as low as $8.50 and as high as $15.82. On average, 6738080 shares of MRVL exchange hands on a given day and today's volume is recorded at 11675041.