I am not clear at all the terms of the deal with TI. Do you know of a source where I could find out more? There are lots of things I'd like to know. Any debts MU assumed, payment terms on the TI loans, number of shares issued to TI, structure of the TI joint venture deals, etc.
Also, during the conference call they made reference to the fact that the "twinstar" fab was already closed. But a bizarre thing that they said in the call, I thought, was that the joint venture partners were responsible for providing all capital to upgrade joint venture fabs. Say what? MU owns some share (half???) of the joint venture, and provides know how, but the partner has to put up all the money? Can this be right? Sounds like a sweet deal to me. If I understood right, it might explain why MU only thinks they need $1 billion over 3 years for the TI fabs, with the $750 million from TI being most of it.
Here is another note, by the way. The TI deal is supposed to add about $.25 a quarter to their loss next year. But that would be including the extra shares issued to TI, I presume, so the loss would be more like $300 million from the TI operations next year. On the other hand, their is no doubt some depreciation of TI facilities included in that loss, so the actual cash loss may be small. But it would really help me project their cash needs if I knew more about this deal.
Carl |
