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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Ramsey Su who wrote (7691)	12/10/1998 7:03:00 AM
From: Michael Sphar	Read Replies (1) \| Respond to of 9980

The Korean gov't is reportedly forcing the marriage of its 2nd and 3rd largest semiconductor manufacturers by year end. Perhaps the Koreans have discovered some heretofore unknown method for debt reduction... Speaking the pending merger of Hyundai/LG Semicon a recent article says: <<One of the biggest stumbling blocks in coming up with a merger package has been how to handle the huge debt load that the two chip manufacturers are now carrying. LG Semicon has a debt-to-equity ratio of more than 5-to-1 and Hyundai Electronics was running a 7-to-1 ratio, according to estimates by analysts. (The Hyundai ratio also covers its telecommunications equipment business.) But now both chip operations reportedly have agreed to cut their debt-to-equity ratios to 2-to-1 by the end of 1999.>>