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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: StanX Long who wrote (58554)	1/9/2002 2:49:30 AM
From: StanX Long	Read Replies (1) \| Respond to of 70976

01/09 01:22 Hynix Surges as Yonhap Says Micron Wants Chip Merger (Update1) By Ian King and Heejin Koo quote.bloomberg.com Seoul, Jan. 9 (Bloomberg) -- Hynix Semiconductor Inc.'s shares surged to a six-month high on a report that Micron Technology Inc. submitted a proposal to the Korean chipmaker that includes merging their computer-memory chip businesses. Hynix shares rose as much as 15 percent to 3,225 won after Yonhap News reported a Micron negotiating team led by Chief Executive Officer Steve Appleton offered the package. The two companies have been talking since last month about a tie up that may include merging their dynamic random-access memory businesses. Such a combination would overtake Samsung Electronics Co. to become the largest maker of DRAMs, which are used as the main memory of personal computers. ``Investors are hoping that a Micron-Hynix tie-up will help raise chip prices, which is good for the whole industry'' said Lee Young Ho, who manages 300 billion won ($230 million) at Kyobo Investment Trust Management Co. in Seoul. Lee said he may buy Hynix stock ``if Micron makes an official announcement.'' Last year, the price of the industry-standard 128-megabit chip swung from $5.61 per chip in January to a low of $1.07 in November -- less than half the cost to manufacture -- before recovering to $3.09. The Yonhap report, citing an unidentified official at the Hynix restructuring committee, said the two sides may sign a non- binding agreement this week. Shin Kook Hwan, who heads the committee, and Choi Soo, a Hynix director on the committee, denied they made the comments to Yonhap. The two are the only officials authorized to speak on behalf of the organization set up to administer Hynix's bailout by its creditors. Hynix may seek another investor after selling 19.9 percent of its non-memory chip division to Micron, the report said.