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: kir71 who wrote (3676)	4/1/2008 2:11:01 AM
From: Rink	Read Replies (1) of 4590

Target price reduced for ST because of the less than desirable financing of Numonyx and because Intel's NOR business is aparently considerably more prone to losses. (I wonder what made ST's part more profitable btw.) These reasons point towards a not so good start for Numonyx. They originally intended to get 1.3B loan + 250M revolver and instead after a lot of negotiations only got 450 loan + 100M revolver. Add to this that the 450M loan had to be fully garanteed by Intel and ST (each for 50%). Numonyx will need to save costs because there is little love at Intel and ST to throw more money at it (the reason Numonyx got cut from it's parents to begin with). Rather good indication of a bad start if you ask me. Regards, Rink

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