Original URL: http://www.theregister.co.uk/2003/09/03/citigroup_wants_to_buy_hynix/

Citigroup wants to buy Hynix' non-memory biz

To pay with a Diners' Club card?

By Tony Smith

Posted in Channel, 3rd September 2003 09:47 GMT

Hynix is negotiating the sale of its non-memory business to US banking company Citigroup, a company spokesman said, cited by the Financial Times.

"Citigroup has submitted a letter of intent to buy our non-memory chip operations, so we are talking to it as our primary negotiating partner," the spokesman said.

Non-memory products account for around 20 per cent of Hynix' sales and were worth $600 million last year, the paper stated.

However, in a bid to build a viable ongoing business - and to help pay off its numerous creditors - Hynix wants to concentrate on memory products and sell off non-core operations.

Meanwhile, its memory business is the subject of punitive tariffs imposed by both the European Union and the US, and faces the prospect of similar levies being forced upon it in Japan and Taiwan, if memory makers there get their way. That will make it harder to ship product through intermediary countries in order to bypass the duties, which Hynix claims it is already doing, with some success.

Citigroup comprises a range of consumer and institutional financial services and banking operations, including Citibank, Diners Club and investment house Smith Barney. It holds over $100 billion in assets. For the three months to 30 June, it recorded revenues of $19.4 billion. ®