KT: Micron Backs Away From Deal With Hynix
Micron Technology is reportedly rethinking its strategy for the take-over of the memory lines of Hynix Semiconductor due to strong objections from its board of directors.
Creditor officials of Hynix, themselves skeptical about the deal, said yesterday that there is a possibility of Micron calling off the talks if negotiations do not resume quickly.
"It happens in all negotiations but we understand that there are strong voices within Micron which are saying that there is no need to take over the Hynix memory lines," one of them said.
Considering the current situation - Hynix is in the process of revising a proposal for a memorandum of understanding from Micron - things can get only worse as time goes by, he added.
Another creditor official who has been close to the negotiations, said Micron is changing its attitude since the memory market is recovering and boosting its profitability, thus leaving it with the question of whether or not there is a need to rush the deal with Hynix.
"As it stands, Micron is unable to finalize its business plan for this year because of the uncertainties involving Hynix. It had to shelve its plans to invest in a 12-inch wafer processing line," he said.
If the situation is uncertain for Micron, it is not alone since an increasing number of voices are calling for Hynix to reconsider the deal in favor of recovering on its own.
In fact, Commerce, Industry and Energy Minister Shin Kook-hwan cautiously suggested in a meeting of semiconductor executives the possibility of Hynix negotiating a strategic alliance with Samsung Electronics instead of Micron.
"As time goes by, the issue is becoming more and more complex but one certain reality is that the options are improving for Hynix with the market in recovery," the creditor official said.
Meanwhile, securities analysts said yesterday that acquiring Hynix's DRAM lines is not likely to have a significant impact on its corporate value and that there are still numerous uncertainties facing Micron.
jakenho@koreatimes.co.kr
2002/02/22 16:54
korealink.co.kr |
