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Technology Stocks : Spansion Inc.
CY 23.820.0%Apr 16 5:00 PM EST

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To: neolib who wrote (4385)1/1/2009 10:18:40 AM
From: Plissken  Read Replies (1) of 4590
 
I doubt Samsung could win regulatory approval for buying Spansion and as far as one of their customers is concerned they would hardly be interested in adding this kind of business under their umbrella of making products that are far higher up the slope.

Apple for example has a much better shot at pressuring Samsung to settle to make the threat of injunctions against their finished products go away than either looking for credit in the current market, diluting stock or tapping cash reserves to buy a company that they don't even do immediate business with and only affects one - if crucial - base component of what they do their real business in.

I think Spansion understands that well and thus is using it, appropriately, as their primary point of leverage. Samsung may be hoping that Spansion goes bust to get more favourable terms, but with the case, at least in my opinion, having lots of merit, it won't disappear even under bankruptcy protection.
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