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To: TechHunter who wrote (21046)	2/8/1999 9:36:00 AM
From: BillyG	Respond to of 25960

LG fab strike ends; merger moves ahead semibiznews.com A service of Semiconductor Business News, CMP Media Inc. Story posted 7:30 a.m. EST/4:30 a.m., PST, 2/8/99 SEOUL -- LG Semicon Co. Ltd. settled its worker strike over the weekend, and today said it expects to sign a final agreement this week to sell its chip company to Hyundai Electronics Industries Co. Ltd. An LG Semicon spokesman here said the final sale will be for cash, but he could not disclose at this what the purchase price would be at this time. LG Semicon initially had been asking for a bonus that would have been up to $4 billion, while Hyundai Electronics reportedly was offering about $2 billion. Hyundai was also willing to assume nearly $4 billion in LG Semicon debt. Meanwhile, LG fab workers had returned to work at 7 a.m. today, according to the Korean company. The company spokesman said it would take another two to three days to get all the fab processes requalified and running at full speed again. He confirmed that the work stoppage ended after LG Semicon agreed to give the workers six months extra salary as compensation for selling out to Hyundai. It wasn't clear if that extra cost will be factored into the purchase price for LG Semicon. Hyundai also agreed to retain all LG workers through 2000, thus delaying some of the expected savings from consolidating the two companies. However, sources said Hyundai had little choice but to keep LG fab workers, since that firm's plants operate differently. The LG Semicon strike had been on for 15 days, reducing a half month's production from the world's fifth largest DRAM producer. Even with LG fabs coming back on line later this week, the uncertainties of the merger into Hyundai could continue the DRAM market nervousness sparked by the strike at a time when global market continues very strong. --Jack Robertson