Hynix, Micron to Talk Anew
Jan. 21, 2002
SEOUL, South Korea (AP) _ A delegation of South Korea's troubled Hynix Semiconductor Inc. left for the United States Monday for a new round of talks on a possible alliance with Micron Technology Inc.
The delegation, led by Hynix President Park Chong-sup, will deliver Hynix's position on Micron's latest takeover proposal and hold specific negotiations aimed at signing a memorandum of understanding, the South Korean firm said in a news statement.
The two-sentence statement gave no further details.
It will be third round of negotiations between the two parties since they agreed in early December to seek a strategic alliance and consider other options that industry officials said would lead to a merger.
The leading Chosun Ilbo newspaper, quoting a source it did not identify, reported Monday that Micron has proposed $3 billion in stocks to take over Hynix's entire memory chip operations and 25 percent of its non-memory operations.
According to the report, Micron said it would not take over any of Hynix's estimated $6 billion debt owed to South Korea's government-controlled banks.
Some Hynix creditors think the suggested price by Micron is too low, the paper said.
Micron and Hynix are the world's second and third largest chipmakers, respectively. Their merger would create the world's largest memory chipmaker with a combined global market share of 38 percent. The current industry leader, Samsung Electronics Co., has a 30 percent global market share.
Hynix's troubles worsened this year amid sagging global demand and prices for memory chips. The company has been bailed out several times in the past two years.