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

To: Bill F. who wrote (45261)	4/21/1999 9:20:00 PM
From: Chas	Read Replies (2) \| Respond to of 53903

Hyundai and LG Groups concluded Thursday a landmark "big deal," Bill, I forgot I have DTNIQ, so here it is: Okay, so now we have the deal, what does this mean as to: DRAM market moving forward? Affect on Micron and or any other DRAM maker? I only have some thoughts, perhaps Hyundai will be pre-occupied for awhile trying to sort out the new company and re-organizations like Compaq and DEC? I imagine it being much different, they have had plenty of time to think about all this, I think they have a complete plan ready to push the button. Affect on DRAM market, well at least LG is not going to continue to dump product for too much longer before the control is passed over. I think Hyundai will be responsible to the market. Affect on Micron, well maybe less suppliers is better? Does not seem to make much difference in the short term. The market is soft, the merger should not really affect anything. Appreciate anyones comments. Good trading. ---------------- SEOUL, Apr 22, 1999 (Asia Pulse via COMTEX) -- South Korea's Hyundai and LG Groups concluded Thursday a landmark "big deal," or business swap or merger, by agreeing on the takeover price of LG Semicon's stocks at 2.56 trillion won. Under the agreement, Hyundai will buy a 59.98-percent stake in LG Semicon held by the LG Group's main shareholders and executives for 2.56 trillion won (US$2.1 billion). Hyundai will pay 1.56 trillion won immediately in cash plus its 5-percent stake in the telecom company Dacom worth around 100 billion won. The remaining 1 trillion won will be paid in installments over two years after a one-year grace period. Upon acquiring the LG Semicon stakes, Hyundai Electronics Industry (KSE: 00660) will control 15.7 percent of the global DRAM market to become the world's second-largest memory chipmaker after Samsung Electronics (05930). After the merger, Hyundai will have the capacity to produce 27 million 64-mega DRAM chips and 48 million 16-mega DRAM chips per month, exceeding that of Samsung totaling 20 million and 15 million in the respective sectors. The agreement was made after two meetings between the chairman of the two conglomerates from Monday and marathon working-level talks through late Wednesday. The two groups finally came to terms on LG Semicon's value three months after LG first announced that it will relinquish its semiconductor unit Jan. 6. Hyundai and LG said they will settle other details and sign a contract within the week. (Yonhap) -0- (C) 1999 Asia Pulse Pte Ltd