Feeds

SK Hynix drops bid to buy bankrupt Elpida

Joins Toshiba in abandoning DRAMurai warrior's corpse

Boost IT visibility and business value

South Korean firm SK Hynix said today that it won't be going ahead with a bid for bankrupt Japanese firm Elpida Memory because the deal would have been too expensive.

"The Elpida deal would have been a huge financial investment," an SK Hynix spokesman told the Wall Street Journal. "To ease the financial burden, we had previously hoped to work with possible partners, such as Toshiba, but it didn't work out."

SK Hynix also confirmed in a regulatory filing that its shareholders had agreed to abandon the bidding.

Investors were made very happy by the news, sending the company's shares rising by almost 6 per cent at one point – they were still up by 3.3 per cent at 12.00 BST today.

At the end of last month, Toshiba reportedly pulled out of the running to snap up Elpida because it couldn't sort out a partnership with SK Hynix and didn't want to go it alone. Toshiba's exit was also greeted with relief from investors, growing the firm's shares by 3 per cent on the day the news broke.

With both SK Hynix and Toshiba out of the race, Elpida, whose price tag is rumoured by Japanese media to be about $1.9m, is left to the mercies of US chipmaker Micron or private equity firms.

Elpida, once the world's No 3 DRAM manufacturer, suffered as the world decided it liked NAND chippery much better. It filed for bankruptcy protection in February. ®

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

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.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.