Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Micron Only Forum -- Ignore unavailable to you. Want to Upgrade?

To: phbolton who wrote (45001)	4/11/1999 9:22:00 PM
From: DJBEINO	Respond to of 53903

04-12-99 Hyundai-LG chip merger talks seen to make rapid progress By Nam In-soo Staff reporter The drawn-out merger talks between the Hyundai and LG groups' chip units are expected to make rapid progress as Hyundai, under mounting pressure from both the government and public, is showing flexibility. In an apparent move to speed up the talks, Hyundai Group Chairman Chung Mong-hun cut his overseas trip short and and met with Lee Hun-jai, head of the Financial Supervisory Commission Friday. The meeting spawned prospects that a deal could be struck next week at the earliest. A commission spokesman said Chung and Park Se-yong, chairman of Hyundai Merchant Marine Co., conversed with Lee over the merger and Hyundai's group restructuring efforts. The spokesman refused to elaborate on details, but said the top Hyundai executives made it clear that Hyundai will do its best to strike a deal with LG as soon as possible. Chung is also known to have promised to faithfully carry out its corporate restructuring program, which will drastically reduce its affiliates and drop its debt ratio under 200 percent by the end of this year. Sources said the Hyundai leaders also briefed the commission head about its new proposal to make a partial payment of the LG Semicon Co. shares it will take over, with the remainder payable over the next three to five years in accordance with the merged firm's business performance. "Once the share price is set, we plan to pay about 1.2 trillion won first and disburse the remainder over a certain period," said a group official, adding that it received a favorable response from LG. But the two firms have yet to iron out differences over how much Hyundai should pay for the shares it is to take over from LG Semicon. Industry watchers said a deal may be sealed before April 22, when a meeting of political and business leaders is due to assess the progress of the big five conglomerates' commitment to improve their financial structures. Hyundai's softening of its stance came as the group faces allegations of stock price manipulation. The commission announced Thursday that Hyundai Merchant Marine Co. and Hyundai Heavy Industries Ltd. Co. artificially propped up the share price of Hyundai Electronics Industries Co. between May and November last year. The two firms were found to have spent a combined total of 220 billion won buying Hyundai Electronics' shares, ? a move news reports said was aimed at securing the upper hand in the merger talks with LG. The commission said it was notified of Hyundai's alleged market manipulation by the Korea Stock Exchange (KSE) last August, but delayed launching a probe until quite recently due to a manpower shortage. The probe also accused Hyundai's Chung family members of exploiting insider information to capitalize on the rising share price of Hyundai Electronics. According to the KSE, Chung Ju-yung, honorary chairman of the Hyundai Group, sold 805,000 Hyundai Electronics shares this year. Hyundai Group Chairman Chung Mong-hun was also found to have sold 2.96 million shares of the electronics firm. Other members of the Chung family, including Chung Mong-kyu, sold a total of 910,000 shares last year. Securities sources estimated that the Chung family made a 614 billion won profit from selling their shares in the electronics firm. The commission said the case could be passed to prosecutors for legal action after further deliberation. Analysts said the commission's move may be designed to pressure Hyundai to soften its stubborn stance in the merger talks with LG to reach a conclusion soon.