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To: Duker who wrote (2632)	3/16/1999 5:53:00 AM
From: Duker	Respond to of 5867

Korea's Hyundai seen raising cash for LG takeover By Kim Myong-hwan [Let's hope we get this behind us ... August would be fine with me ... the better the balance sheet, the better the ability to buy or WFE ... --Duker] SEOUL, March 16 (Reuters) - South Korean chipmaker Hyundai Electronics will be able to raise enough cash to take over LG Semicon through asset sales, rights issues and foreign investment but a deal is months away from completion, analysts said on Tuesday. Hyundai Electronics said on Monday it was selling its chip-packaging subsidiary in the United States, ChipPAC Co, for $550 million to U.S.-based equity investment companies. Only a month ago, the chip producer announced it raised $306 million through equity and debt sales by its U.S. affiliate, Maxtor Corp (Nasdaq:MXTR - news). ''Hyundai Electronics has already secured more than half of what it aimed to raise in foreign capital this year,'' said Rhee Ki-hong, analyst at HSBC Securities. ''It can also issue new shares and sell more assets.'' In January, LG Group [LUGG.CN] agreed to hand over the management of LG Semicon to Hyundai Electronics as part of a government-initiated restructuring drive to cut overcapacity in key industries. But negotiations on takeover conditions have stalled over the pricing of LG Semicon. Hyundai is offering to pay about one trillion won ($816 million) but LG wants four trillion won in cash, industry sources said. Hyundai said the company planned to bring in $1.55 billion of foreign funds this year to improve its financial status, on top of the $2.1 billion it raised overseas last year. It sold its U.S. non-memory chip affiliate Symbios Inc last July to LSI Logic Corp (NYSE:LSI - news), listed shares of Maxtor on the Nasdaq in the United States for $350 million and floated $50 million in convertible bonds. As a result, Hyundai Electronics' debt-to-equity ratio dropped to 446 percent at the end of 1998 from 688 percent a year earlier, a company spokesman said. ''We will be able to bring the ratio down further to 200 percent by the end of this year as we promised,'' said the spokesman. The takeover of LG Semicon would not hinder Hyundai's plan to lower the debt ratio as LG's debt-to-equity ratio had been reduced to close to 200 percent. Hyundai Electronics was saddled with about 10 trillion won of debts at the end of 1998, against equity of 2.3 trillion won, while LG Semicon had debts of 5.1 trillion won againt 2.1 trillion won in equity, analysts said. ''The progress of the talks seems to be a bit slow,'' said Koo Hee-jin, analyst at Daishin Economic Research Institute. ''But they will find the middle ground in a few months.'' Analysts said Hyundai Electronics could hand over to LG all of the shares in telecommunications firm Dacom Corp held by Hyundai Group [HYGR.CN] companies, estimated to be worth 900 billion won. ''We think the takeover of LG Semicon would be completed by August,'' said the Hyundai spokesman. The merger of the two Korean chip producers could lure big foreign names into strategic alliances, analysts said. ''Hyundai Electronics could emerge as the world's top memory producer. Then Intel Corp (Nasdaq:INTC - news) might be interested in tieing up with Hyundai Electronics for supplies of memory chips,'' said Rhee of HSBC Securities. Korean rival Samsung Electronics is currently the world's largest memory chip producer. Japanese chip producers, reluctant to expand capacity in an uncertain global climate, may also want Hyundai to be their supplier, Rhee said. ($1 equals 1,228.7 won)

To: Duker who wrote (2632)	3/16/1999 6:21:00 AM
From: Duker	Read Replies (1) \| Respond to of 5867

I feel like a freak on this thread ... I looked back to see only JHY and Demo commenting on the "Most Recent Posting Listings" ... Are we only interested in these companies during earnings season? [I apply this to more than just the LRCX thread.] I call LRCX every week or two to get an update. I call my other companies with varying frequency to do the same. I always want to discuss what I own. I want people to ask questions. I want to ask people questions. I like when people post random news stories that have a bearing on the industry and/or the company. I realize that most of you do not "do this investing thing" for a living. It is very difficult to "do research" during office hours ... though, I would argue that when the stock is more active (up, especially) we see a whole lot more activity. For most, this forum is interesting, but not altogether useful. [Hey, for all I know ... there are hundreds of people that read this ... they just do not want to shell out the cash for a subscription ... I understand that completely ... but, the cash component does keep out the twaddle that one sees on the Yahoo threads ... though, there are some smart people over there (e.g., Rune and his alter ego on the bear side ... can't remember his name offhand ... cognitive dissonance!).] For me, SI is becoming more of a personal scapbook -- a diary if you will. I have posts where I am the only poster ... HMN, RHD, VSEA, etc. Is anyone interested in VSEA (Varian's Ion Implant business)? Seems like it could be tremendously interesting if it gets tossed with the bathwater ... most of the Healthcare Products guys do not understand this business ... and do not care. I understand why people could care less about HMN ... how exciting is auto insurance (though it gets certain folks in Omaha pretty worked up ... but, HMN is no GEICO ...)? RHD ... yeah, it is cheap, but where is the catalyst? Venator? That company is going out of business. CFMT? Call me when the settle the lawsuits and/or start earning money again. Sometimes I just like to vent. Feel free to ignore all of the above. --Duker