Micron, Hynix Confirm Merger Talks
BOISE, Idaho (AP) _ After weeks of fending off rumors, Micron Technology Inc. and Hynix Semiconductor confirmed that they will consider a possible merger, one that would create the world’s largest maker of semiconductor memory.
In a statement Sunday, the companies said they ``are evaluating a broad array of strategic options.″ Together, the two companies represent about half the market share for semiconductor memory.
Hynix has been on financial life support for months, swamped by $6 billion in debt. It lost nearly $3 billion in the first nine months of 2001. Earlier this fall, creditors provided new loans, refinancing and some debt write-off to keep the South Korean company afloat.
Rumors that Hynix was seeking a buyer surfaced this fall. In recent weeks an unsubstantiated report was published in South Korea saying Micron was a possible suitor, though the Boise company had refused to confirm.
Hynix chairman C.S. Park said the talks are ``part of Hynix’s ongoing evaluation of possible steps to maximize stakeholder value in the face of an unprecedented downturn in the semiconductor industry.″
Shares of Micron rose $1.40, more than 5 percent, to close at $28.56 in trading Monday on the New York Stock Exchange.
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