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Technology Stocks : Amkor Technology Inc (AMKR) -- Ignore unavailable to you. Want to Upgrade?

To: Artslaw who wrote (458)	12/6/1999 1:18:00 PM
From: tech101	Read Replies (1) \| Respond to of 1056

According To Moody: ... Additionally, Amkor would immediately realize a significant increase in gross margin, because it would no longer be restricted to the 11.5% margin on the share of packaging and test revenues currently attributed to K1, K2 and K3 as stipulated under the current contractual arrangement with Anam. It could be determined that Amkor's plan for funding the acquisition would be unlikely to materially alter its debt to cash flow and debt to total capitalization ratios due to the prospect of a $410 million equity investment, and the benefit to cash flow from the overall widening of gross margins. ... The review will take into account, among various issues, Amkor's prospective borrowing plan and its impact on the company's capitalization; the continuing recovery of the semiconductor industry and the demand for packaging and test services; the pricing environment, which appears to have stabilized through 1999Q3 as declines in average selling prices for packaging services have moderated; the capital expenditure implications of ownership in a semiconductor foundry; and an assessment of the goodwill that would likely accrue from the proposed transaction. While integration issues would normally surface in an acquisition of this size, Moody's believes that such concerns would have minimal relevance in this instance. Amkor was originally founded as the North American marketing agent for Anam. ... Under the supply agreement between Amkor and Anam, Amkor has maintained a first right to purchase substantially all of Anam's packaging and test services and to purchase all of Anam's semiconductor wafer output. ...