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Technology Stocks : Alliance Semiconductor -- Ignore unavailable to you. Want to Upgrade?

To: Norrin Radd who wrote (4366)	12/13/1998 10:26:00 PM
From: DJBEINO	Respond to of 9582

LG Semicon. To Ditch Big Deal With Hyundai LG Business Group is currently trying to determine the best timing to make an official announcement that it has decided to cancel its plan to negotiate a Big Deal merger of LG Semiconductors with Hyundai Electronics. In the meantime, the government is known to be looking into appropriate punitive measures against LG for its backtracking on the deal. LG is making the move, saying that Hyundai Business Group was hoping to solve the poor financial standing of it's electronics division by absorbing LG Semiconductor. One high-ranking official involved in LG's restructuring efforts claims that Hyundai Electronics would definitely collapse without the merger. An even stronger allegation is circulating within the LG Group that the government is attempting to confiscate LG Semiconductor to give to Hyundai Electronics. The same official said that the LG Group had already told President Kim Dae-jung in a major Big Deal meeting on December 7 that it would not give up its semiconductor division. LG has been preparing itself for the cancellation of the Big Deal merger, with LG Semiconductor reinforcing its financial standing by increasing its paid-in-capital by W500 billion and raising several trillion won through asset sales and issuance of company bonds since November. LG officials said, however, that the group has been keeping a low profile on these activities so that it would not give the impression that it was opposing the government's restructuring efforts. LG Semiconductor is confident that it can lower its debt-to-equity ratio, which was 487% at the end of last year, down to 198% by the year-end.