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To: TREND1 who wrote (34391)	6/4/1998 8:04:00 PM
From: mike iles	Respond to of 53903

Larry, surprised you did not find it funny ... what about HAL, bet he thought it was a gas. Re your open letter, don't think it makes sense for a couple of reasons: 1)MU hasn't invested much in new equipment in the last year ... so in a commodity business why would you buy out a guy with an old plant ... plus you have to pay extra for all sorts of infrastructure that you don't need. 2)the MUEI shares are worth about $3 1/2 per MU share. So if you paid say $24 for MU you would be paying $20 1/2 for the semi business ... this is about $4 1/2 billion for a business which, on a good day, a very good day, is worth $1 billion. With that extra $3 1/2 billion you could go out and build 2 300mm fabs with .18 process technology that would blow the socks off MU. 3)if you're doing all this just to get rid of a competitor, well MU only has about 10-15% of the market. You still have the Koreans (but hey maybe they'll shut down for 2 weeks) and the Taiwanese (Mike Burke who has been over there says they're the real threat) to contend with. So you haven't solved your problem. One thing we might agree on is I think MU has excellent (perhaps 'had' .. maybe they departed with Tyler Lowery) manufacturing skills. What they should do is get out of fab ownership and somehow capitalize on these skills ... turn themselves into a service company. Split the profits with the fab owners. The first fabless DRAM manufacturer. Unfortunately, this isn't an option until they're staring bankruptcy in the face ... regards, Mike