Micron walks away from Hynix
Hand washing exercise
Hynix's creditors still want the Korean chipmaker to be sold.
Korea Exchange Bank President Lee Kang told Bloomberg
"Creditors have not changed their original position that Hynix should be sold. "I hope that a channel of further talks with Micron has not been severed."
Well it looks well and truly mangled - today Micron said it has ceased all talks with Hynix, following the rejection by the Korean firm's board of its $3.4bn takeover proposal
In a statement, Steve Appleton, Micron's Chairman, President and CEO, said: "Despite considerable efforts, the parties could not reach a preliminary agreement. After careful evaluation, we are unable to discern a process that would allow the numerous parties involved to reach agreement in a timely manner. As a result, we are withdrawing from the Hynix negotiations. We appreciate the extraordinary efforts of all those involved in the negotiations."
Hynix's board and unions reckons the company can go it alone. However, the creditors are owed almost $5bn, And they have the right to convert $2bn worth of bonds into equity next month, giving them a 75 per cent stake. Hynix needs radical re-organisation and investment.
Following Micron's long, arduous and unsuccesful pas de deux with Hynix, it's very unlikely that any other semiconductor firm will come along as a dance partner. Hynix, or more likely, its banks, will have to get it into shape first, And what then? Most likely, it'll still end up being bought - by Micron, or Samsung, or Infineon. ®