Hyundai to raise more Maxtor money

Reports in the Korean press said that Hyundai will hang onto its hard drive subsidiary Maxtor but will spin off other units to raise cash for an LG takeover. According to Hyundai, it is to seek a new rights issue on Wall Street this year but still wants to retain the hard drive company which it sees as having a future. Yesterday, Hyundai said it would get rid of a number of technology and non-technology subsidiaries to raise the cash it wants to pay for LG. Those include its LCD business, its telecoms businesses and a chip packaging firm. However LG is now pushing for further concessions from LG, including a demand that it re-employ its semiconductor staff for a period of between five and seven years. LG is also insisting it be paid more for its semiconductor business, for a period of up to twenty years in the future. ®