"Hyundai, LG likely to sign stock sales-purchase contract next week "
The other factor that may also contribute to the stock going down is the contract pricing is done, Dataquest report says the LG articles were a bit overdone right at the time the pricing is being set, and at a time when seasonal pricing is a bit soft. Now this article below comes out today, reflecting a positive for Hyundai, but not so good
for Micron. Can you imagine having 15-16 Fabs under your control?
I expect MU price to reflect a lower trend eventually especially after reading the latest article below. So the threatening slow down of product from LG will resume I am sure, there is lots of debt interest payments to make.
Anyone care to share some put option ideas? or does anyone think this is positive for MU stock?
Good trading.
--------------------------
KoreaHerald--02-02-99 Hyundai, LG likely to sign stock sales-purchase contract next week
Hyundai Electronics Co. is expected to sign the contract on acquiring stock from LG Semicon next week, having neared agreement on job guarantees for LG Semicon employees after the takeover and layoff compensation, a Hyundai executive said yesterday. The Hyundai senior executive, requesting anonymity, said he will meet LG Semicon officials today and start negotiating stock purchase price. They plan to wrap up the deal before next Wednesday, the Hyundai source said. When it's a done deal this month, Hyundai will take over LG Group's full equity in its semiconductor unit in April and complete the union by July.
An LG executive also confirmed that a contract may be signed within the next 10 days. Another Hyundai insider said the company agreed in principle to accept the government's recommendation to guarantee jobs for LG employees till the year 2000 and pay unemployment compensation for 10 months in advance payment when dismissal is inevitable. As a condition for the takeover, LG demanded that Hyundai assume all LG Semicon employees and guarantee their job security for up to seven years after takeover before proceeding with further negotiations for its surrender of its semiconductor unit.
Hyundai refused to accept LG's demand on job security, but the two made concessions after the Labor Ministry intervened. A ministry official said Hyundai, LG, and LG's staff representatives reached a basic agreement on employee retention and that they no longer require government mediation. The government, therefore, will not be taking part in future meetings, but can attend the signing ceremony if the concerning parties so desire, the official said. |
