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Technology Stocks : Micron Only Forum -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (35526)	6/21/1998 11:31:00 AM
From: Knighty Tin	Read Replies (4) \| Respond to of 53903

Zeev, I think it is more of a mixed blessing. They had to have a cash infusion to survive. There is no question of that. But Shylock TI did get their pound of flesh by giving them a cash-bleeding DRAM operation that is not state-of-the art in 1998. So, they do not make any progress toward catching up on the technological front and they take on more chips that are of the cheapest commodity type. If the $750 million were used to upgrade to next generation chips and production techniques, I might be more positive. But they can only use a small portion for those needs. The rest has to sit and draw interest to act as a bandaid for the quarterly bleeding. And the TXN acquisition just assures faster bleeding. The real question is, could they have found cash any other way. MUEI is no longer a sellable asset. The convertible market has wised-up to the MU scamsters after the last debacle. Simplot is a possible source, but his heirs probably don't like the idea of him throwing their future into a black hole. The only grossly overpriced asset they have is the parent company stock, and that is only overpriced as long as they don't try to sell it. So the TXN deal may have been a bad solution, but the only one available. MB