Spansion Inc. Message Board

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Technology Stocks : Spansion Inc.

CY 23.82

0.0%

Apr 16 5:00 PM EST

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To: bobs10 who wrote (3150)	1/23/2008 10:32:10 AM
From: Pam	Read Replies (2) of 4590

As a SPSN investor I can only hope that this drags out as long as possible. Why anyone would want to get involved in financing Numonyx is beyond my comprehension. Given the existing credit crunch one would expect that there are lots of other investments that make a lot more sense? Anyway, the longer this takes to complete the better for SPSN as the odds of it never getting done will continue to improve. The Numonyx deal was initiated a while ago, when the credit market problems had not emerged in the open, but looking at the current valuation of SPSN and Numonyx, there seems to be a huge discrepancy and this deal will have to be re-evaluated for it to be financed. In the meantime, Spansion has the opportunity to win sockets away from competition. Intel and STM are trying to get rid of a business which has been a constant drain on their financial metrics. The idea with Numonyx was to cut costs and turn it around as a spin-off to recover the money invested by STM and INTC over the years but I doubt it will be that easy, especially because the underlying business is a non-growth, highly competitive business with excess supply!

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