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Slumping sales at Mindspeed Technologies-a once fast-growing maker of networking chips-have prompted Conexant Systems Inc. to indefinitely shelve plans to spin off the unit as a separate publicly traded company, a spokesman said.
"We've postponed until things look better," said Conexant's Roman Kichorowsky. "We simply don't know what to say about when things will look better."
Newport Beach-based Conexant had planned to spin off Mindspeed by September. The decision to delay Mindspeed's separation marks another episode in a long-running saga that started last November.
Back then, Conexant officials said they planned to raise money by spinning off Mindspeed in a public offering. The company planned to publicly sell a portion of Mindspeed shares and distribute others tax-free
But when the market for public offerings dried up, Conexant backpedaled to a one-step plan of just distributing shares to Conexant stockholders-a move that would have turned Mindspeed...