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To: TREND1 who wrote (40348)	10/25/1998 3:28:00 PM
From: DJBEINO	Respond to of 53903

Big Deal In Semiconductors Deemed Unlikely Opinion is on the rise that a big deal between Hyundai and LG in the semiconductor industry is becoming increasingly unlikely as both companies insist on management rights, with neither seeming to want to strike a compromise. Executives for the two companies also add that uniting their operations could cause complaints from overseas of the creation of a monopoly, and other side effects. However, the government is becoming increasingly hard line in its efforts to push through the deal. When the administration included semiconductors on its big deal list, doubts were expressed about its viability as analysts said that the merged company would be a white elephant like Kia with debts totaling W18 trillion. The two companies have totally different production systems and experts comment that no synergy effects would be gained by a merger. An international lawyer commented that semiconductor manufacturers in the US are watching the situation closely and may call for anti-trust sanctions by the American government. It is known that the Korean government want Hyundai and LG to use an international consulting firm to study which is best suited for management. However, the companies fear that secret production procedures may be leaked through such a firm to its competitors.