SCHLUMBERGER &lt;SLB> ENDS PACT TO SELL FAIRCHILD

  Schlumberger Ltd said it terminated an
  agreement in principle for Fujitsu Ltd to buy 80 pct of its
  Fairchild Semiconductor operations.
      The company said the rising political controversy in the
  U.S. concerning the venture made it unlikely that the sale of
  the Fairchild stake could be completed within a reasonable
  time.
      The sale has been opposed by the U.S. Commerce Department
  and the U.S. Defense Department, in part on national security
  grounds.
      The company said termination of the agreement opened other
  possibilities, including a possible leveraged buyout of the
  semiconductor maker by Fairchild management.
      In the interim, Fairchild would continue its ongoing
  business within Schlumberger, the oilfield services concern
  said.
      Last October, Schlumberger announced the sale of the
  Fairchild stake and said it would take a 200 mln dlrs charge in
  the fourth quarter from the sale. The company ended up
  recording special charges of 2.1 billion dlrs in the fourth
  quarter, leading to a loss of 2.02 billion dlrs for the year.
      Schlumberger never announced a price for the sale, but
  industry analysts have estimated the value of the deal at about
  200 mln dlrs.
      The proposed sale was under antitrust review by the U.S.
  Justice Department. Additionally, Commerce Secretary Malcolm
  Baldridge and other U.S. officials have voiced reservations
  about the transaction since it was announced.
      Government officials have expressed concern that the sale
  could reduce the competitiveness of U.S. chip makers by putting
  key advanced technology into Japanese hands.
      New, high-technology semiconductors are used in
  supercomputers, which are faster and more powerful than
  existing computers.
      Schlumberger is an oilfield services company controlled by
  French interests and headquartered in New York. Fujitsu Ltd is
  a computer and telecommunications company based in Japan.
  

