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

To: StanX Long who wrote (58879)	1/16/2002 12:50:12 AM
From: StanX Long	Read Replies (1) \| Respond to of 70976

Wednesday January 16, 12:00 PM Hynix's reform chief denies debt write-off planned sg.biz.yahoo.com SEOUL (Reuters) - Hynix Semiconductor Inc's creditors are not considering a massive debt write-off as part of merger talks with Micron Technology Inc, Hynix's reform chief told Reuters on Wednesday. "The talks are focused on a merger with Hynix via purchase acquisition method, not debt write-off," said Shin Kook-whan, head of Hynix's reform committee. Purchase acquisition refers to an accounting method used in mergers. It involves the buyer adding the other company's assets to its own at fair market value and later writing off any premium it pays as goodwill. Shin was responding to an Asian Wall Street Journal report on Wednesday citing unnamed sources close to the talks that said Micron had asked creditors to write off about five trillion won ($3.83 billion) in loans to Hynix. Creditors also denied the report. "We have not received any such request (from Micron)," a spokesman for Korea Exchange Bank <04940>, the main creditor, told Reuters. "We had already written off about half of Hynix debt and has no plan to forgive its debt any more." Micron and Hynix <00660> rank second and third in memory production capacity and entered alliance talks in December that would reshape the battered chip industry. The former Hyundai Electronics is considering selling the entire memory business to the U.S. rival, although pricing differences were delaying a deal, which could be worth from $2 billion to $6.5 billion.