National Semi to Sell Fairchild Unit

National Semiconductor Corp. agreed to sell its Fairchild Semiconductor division to a group including the unit’s management and a venture capital firm. Fairchild’s management and Sterling LLC, a Citicorp Venture Capital Ltd. investment company, would invest $550 million in return for a majority of the new company. National Semi would retain a minority interest. The transaction is expected to close by the end of May. After the sale, National would have 12,300 employees and Fairchild would have 6,400. National would continue to operate manufacturing facilities in California, Texas and Scotland as well as a new plant in Maine. Fairchild would be headquartered in South Portland, Maine, and also have operations in Santa Clara, where National is based. National shares rose $1.75 to close at $26.375 on the NYSE.