Hynix ex-CEO stays on to pursue sale
Breaking up is hard to do
Park Chong Sup, who stepped down as CEO of Hynix Semiconductor Inc after its protracted merger talks with Micron Technologies collapsed last week, will remain in charge of the company's effort to dispose of its debt-crippled DRAM business. Co-president Park Sang Ho has been named as his successor.
The ex-CEO's continued presence at the company, and in particular his avowed goal to sell off the DRAM business, is symptomatic of the confusion that continues to blight Hynix's future. The decision of the board of the directors to turn down Micron's offer last week was partially justified by their assertion that the DRAM market is sufficiently recovered to allow Hynix to survive independently.
However, creditors such as the Korea Exchange Bank are known to favor the company's break-up and disposal, a goal they are expected to force through next month by converting KRW 2.9 trillion ($2.2bn) in bonds to equity. This will give them 75% control of Hynix, and the power to vote in a new board of directors prepared to sell the company off piecemeal.
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