News In Brief
A $1.03 billion stock deal was announced by high-speed communications chipmaker Broadcom Corp. to buy privately held ServerWorks Inc., which produces integrated circuits. As a result, Broadcom will have access to ServerWorks alliances, which include Compaq, Microsoft, and Intel - the last of which, ironically, has been engaged in court battles with Broadcom over allegedly stolen company secrets. The deal is the latest in a slew of purchases by Irvine, Calif.-based Broadcom to gain ground in the broadband communications market. ServerWorks is based in Santa Clara, Calif.
General Motors lowered its forecast for North American vehicle production in the current quarter for the second time in a month. It said it expects to produce 1.2 million units in the first quarter, down 7 percent from an earlier estimate and 21 percent lower than output during the same period a year ago. GM indicated the cutbacks were necessary in light of economic and consumer uncertainty and its high inventory of unsold cars and trucks. The move, which is similar to steps taken earlier by Chrysler and Ford, could lead to more temporary plant shutdowns beyond those GM announced last week.
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