January 30, 2009, 10:02 am
Qimonda: Four Weeks To Doomsday
Posted by Eric Savitz
Qimonda (QMNDQ.PK) has four weeks to find an investor to save the business before it will have to close production and dismiss 12,000 workers, the Financial Times reports, citing “people close to the company.” Qimonda filed for insolvency a week ago.
The story says that potential buyers could get a bargain in Qimonda’s state-of-the-art technology, but that the need for further investment could drive up the total commitment required to buy and run the company to $650 million to $1.3 billion.
The FT says that Qimonda is hoping to lure rivals in the DRAM business, such as Sasmung, Hynix, Elpida or Micron (MU). The report also said a key factor could be support from the governments of Portugal and the German state of Saxony, which the company has production operations. Both governments had previously offered loans to Qimonda in an effort to keep the company afloat, although the deal collapsed.
In trading on the pink sheet, Qimonda shares are unchanged at 12 cents. |
