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

To: StanX Long who wrote (63338)	5/1/2002 1:12:10 AM
From: StanX Long	Read Replies (1) \| Respond to of 70976

Hynix board kills deal with Micron By Mike Clendenin EE Times (04/30/02 05:02 a.m. EST) siliconstrategies.com TAIPEI, Taiwan — Hynix Semiconductor Inc.'s Board of Directors unanimously rejected the proposed sale of its core memory operations to Micron Technology Inc. on Tuesday, killing the deal that would have brought badly needed consolidation to the DRAM industry and flouting the earlier approval of creditors who have extended two multi-billion bailout packages to the sickly Korean memory maker. After a six-hour meeting, the board concluded there were too many flaws in the deal worked out by Hynix and Micron executives in tandem with creditors, who participated in some of the negotiating sessions. “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,” the board said in a statement. In response, Hynix Chief Executive Officer Park Chong Sup tendered his resignation. Micron is willing to give Hynix 108.6 million shares of stock, worth close to $3.5 billion at the time offered, and a $200 million investment for a 15 percent stake in its non-memory business, which would be the sole remaining entity. In the week since the two sides signed a memorandum of understanding, Micron shares have slid to about $26 from roughly $30, making the price tag seem less attractive in the short-term.