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To: Sam who wrote (2507)	2/20/1998 7:04:00 PM
From: Stitch	Respond to of 9256

Sam, Thread The level of competition between Samsung and Hyundai almost precludes any discussions between them about a merger IMO. It is beyond anything you could imagine. Let me give you a "for instance". In a visit to Samsung I was picked up in Seoul by a local trader and driven to Suwon (before Samsung moved their DD plant) He parked his car in a restaurant parking lot and proceeded to hail a taxi for the short trip to Samsung's huge industrial site there. The reason? He drives a Hyundai and Samsung won't allow a Hyundai car on their campus. Further, I am not sure there is a good strategic reason for the two companies to merge. They both target the same capacity points, and they both have had their eye on media production (with Hyundai's Maxmedia way ahead)next, as vertical integration plays. Rather redundant as opposed to complimentary. best, Stitch

To: Sam who wrote (2507)	2/20/1998 8:02:00 PM
From: Frodo Baxter	Read Replies (1) \| Respond to of 9256

>(although I am personally suspicious of Maxtor; I will believe that they are for real after they've made a successful product transition or two) I dunno. Today, I spotted a CompUSA circular. Ya know what they were advertising? Maxtor 11.5! A new generation every four months. That's DAMN impressive. >(That is why I am not that unhappy about pricing pressures right now--if it had to happen at all--and why I think it makes some perverse sense, taking a long range view of the industry from the point of view of SEG, QNTM and WDC. They do not want to compete against a "country-run company", as it were.) As you know, I've always contended that it was SEG's irrational obstinance over their market share that caused this imbalance, and NOT some foreign dumper. >WDC buying Maxtor Too much leverage. No benefit to Maxtor. But if forced to speculate, how about SEG buying Maxtor? Then SEG can write-off their bleeding desktop ops and Wall St. will raise nary an eyebrow. Yeah, I know... been there, done that. But if SEG doesn't do something quick, they could lose the pole position in revs as early as this quarter.