12/04 02:15
Hynix Shares Surge as Micron Officials Head for Korea (Update1)
By Ian King
quote.bloomberg.com
Seoul, Dec. 4 (Bloomberg) -- Hynix Semiconductor Inc. shares surged for a second day after Micron Technology Inc., the second- largest computer memory-chip maker, said it's in talks about investing in the debt-laden Korean company.
Micron executives will arrive in Korea tomorrow, Hynix spokesman Kim Seung Soo said, confirming a report in the local press. Yesterday, the companies said they were in talks to form a ``strategic alliance,'' including a purchase by Micron that would make it the biggest company in the $30 billion-a-year industry.
A combined company will have annual sales of about $12 billion, overtaking Samsung Electronics Co. as the largest maker of dynamic random-access memory chips. Micron may balk at buying an unprofitable company that has $6.8 billion in debt and is seeking its second multibillion-dollar bailout in six months, some investors said.
``It's unlikely that talks will result in a merger,'' said Kim Sung Tae, who helps manage 1 trillion won ($787 million) in equity investments at CJ Investment Trust Management Co. ``A tie- up that would allow both of them to cut R&D expenses would be more probable.''
Hynix shares rose 7.9 percent to 2,660 won after earlier rising as much as 14.8 percent. The shares, which closed at their highest since July 3 are up by almost half since the beginning of October, although they are still down 34 percent this year. |
