Feeds

Intel and STMicro Flash venture delayed by cash problems

Loan cutbacks put dent in Numonyx

7 Elements of Radically Simple OS Migration

Intel and STMicroelectronics NV have been forced to delay the merger of their cash-starved flash memory units because of "significant turmoil" in the financial markets.

The giant memory chip firms confirmed yesterday in separate statements that the planned partnership, dubbed Numonyx, has been pushed back to 28 March next year.

The deal had been expected to be completed by the end of this year but the credit crunch has put a dent in those plans with lenders only willing to offer less than half the original cash required.

In May $1.55bn had been offered in debt financing for the new Geneva-based company. Lenders have now significantly reduced that figure, to $650m along with a further $100m in a revolving credit facility.

Intel said: "We are in the process of renegotiating credit agreements, and clearly [the total] will be less.

"The markets have changed significantly since we first announced the deal."

Intel had hoped the merger would turn around fortunes for its troubled flash business as well as see it leap ahead of rival AMD which already has its own flash biz, Spansion.

The new venture could have annual revenue of up to $3.6bn and will create products for mobile devices such as MP3 players and digital cameras.

Once the deal finally completes, Intel will take a 45.1 per cent stake while STMicro will take 48.6 per cent.

Francisco Partners, a Silicon Valley-based private equity group, will invest $150m for a 6.3 per cent stake. ®

Build a business case: developing custom apps

More from The Register

next story
Nice computers don’t need to go to the toilet, says Barclays
Bad computers might ask if you are Sarah Connor
4K video on terrestrial TV? Not if the WRC shares frequencies to mobiles
Have your say with Ofcom now, before Freeview becomes Feeview
PEAK LANDFILL: Why tablet gloom is good news for Windows users
Sinofsky's hybrid strategy looks dafter than ever
YES, iPhones ARE getting slower with each new release of iOS
Old hardware doesn't get any faster with new software
You didn't get the MeMO? Asus Pad 7 Android tab is ... not bad
Really, er, stands out among cheapie 7-inchers
Apple winks at parents: C'mon, get your kid a tweaked Macbook Pro
Cheapest models given new processors, more RAM
VMware builds product executables on 50 Mac Minis
And goes to the Genius Bar for support
Leaked Windows Phone 8.1 Update specs tease details of Nokia's next mobes
New screen sizes, dual SIMs, voice over LTE, and more
Microsoft stands on shore as tablet-laden boat sails away
Brit buyers still not falling for Windows' charms
prev story

Whitepapers

7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?