Tokyo court says Micron can wed Elpida, birth world No.2 chipmaker
Mem warrior wants into bed of penniless DRAMurai princess
White knight Micron is close to winning the hand of its damsel in distress, Japanese chipmaker Elpida Technology: a Tokyo court has approved Micron's acquisition of Elpida and thrown out a rival proposal from a squad of Elpida bondholders.
The stakeholders claimed that Micron's offer to rescue the bankrupt DRAMurai warrior was unfair. However Elpida has said in a statement that the court has referred Micron's offer to its creditors, who have to approve the buy up before it can go ahead.
The jilted bondholders said they will be voting against the deal, and urged other creditors to do the same, Reuters reported.
Memory chip maker Micron swooped in to save Elpida in July, offering $2.5bn (200bn yen, £1.6bn) for the penniless DRAM manufacturer. But the stakeholder group labelled the offer "ridiculously low" and countered with a plan to restructure Elpida's debts and loan it some money to keep it going.
The bondholders filed to stop the acquisition in Tokyo and in the US, where Elpida's American assets are under the protection of a Delaware bankruptcy court. The US court will have to approve the transfer of those assets to Micron as well, putting another potential stumbling block in the way of the deal.
If the creditors and courts let Micron bed Elpida, it will make the US firm the world's number two chipmaker behind Samsung. ®