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

To: StanX Long who wrote (63333)	5/1/2002 12:58:05 AM
From: StanX Long	Read Replies (1) \| Respond to of 70976

Hynix Board Kills Micron Deal By Alex Romanelli, Electronic News Online -- 4/30/2002 2:47:00 PM e-insite.net The board of directors of Hynix Semiconductor Inc. has killed Micron Technology Inc.'s proposed acquisition of Hynix’s DRAM operations. The board unanimously decided not to accept the proposed restructuring plan. A memorandum of understanding between the companies for the acquisition has now expired. "We have reached the conclusion that there are too many problems with the creditors' post-merger restructuring plan for the remaining company," said the board, in a statement. "The plan overestimates the value of the Micron stock to be paid for the sale of Hynix’s memory business; unrealistically presumes the size and timing of contingent liabilities; and is too optimistic in its estimate of the cash flow of the remaining company." Micron had offered to buy Hynix’s memory chip business for 108.6 million Micron shares. When the deal was finally announced after months of negotiation, it was valued at about $3.2 billion. Falling share prices have made the deal seem less attractive in the short-term. Based on Micron’s closing share price Monday of $26.45, the deal was worth only $2.9 billion. Creditors had originally hoped for about $3.8 billion and only narrowly approved the acquisition late Monday. Hynix is heavily in debt to its creditors, by as much as $6 billion, and it reported losses last year of $3.9 billion. Micron would not have assumed any of Hynix’s debt, but in addition to the buy-out of Hynix’s memory operations, Micron would have paid Hynix $200 million in cash for a 15 percent stake of its non-memory chip operations.