Micron offer for Hynix plants goes to creditors.
Byline: From Register-Guard and news service reportsMicron Technology Inc. is pressing its case for buying the memory chip business of rival Hynix Semiconductor Inc.
Salomon Smith Barney Ltd. this week presented an offer from Micron Technology Inc. to the main creditor banks of Hynix, seeking approval for a plan that would make the U.S.-based company the largest maker of computer memory chips.
Hynix's adviser met with officials from Chohung Bank, Hanvit Bank and Korea Development Bank for approval of a proposal for Micron to buy Hynix chip plants, officials at the Korean banks said. If successful, Micron would overtake Samsung Electronics Co. as the biggest producer of memory chips.
Any accord is subject to approval by Hynix's creditor banks, which effectively gained control of Hynix's finances and have first claim on its assets after two multibillion-dollar bailouts last year.
Korean news services said Boise-based Micron is proposing to buy Hynix's memory chip plants - six in Korea and one in west Eugene - for $4 billion.
Also, Micron has asked Hynix's creditors for $1.5 billion of support for a venture to be created once it takes over Hynix's memory-chip business, Internet news provider edaily said Friday. Bankers declined to comment on the report.
Micron wants $1.1 billion for a Korean company it would create to be used for operating funds and purchase of new equipment. Micron also asked creditors to buy $400 million of subordinated 30-year bonds with an annual 2 percent rate of interest, the report said, citing an unnamed creditor.
On Thursday, Hynix and its creditors said they had received a proposal from the U.S. company to buy Hynix assets. Creditor banks, including Korea Exchange, will consider the offer, which has about a ``50-50'' chance of being accepted, Hynix Chief Executive Park Chong Sup said.
A Korea Exchange Bank spokesman declined to comment.
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| Title Annotation: | Business |
|---|---|
| Publication: | The Register-Guard (Eugene, OR) |
| Geographic Code: | 1USA |
| Date: | Feb 16, 2002 |
| Words: | 309 |
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