Hynix on verge of $5bn merger

Chip maker continues on road to receovery...
Written by Sonya Rabbitte, Contributor

Chip maker continues on road to receovery...

Micron Technologies could be within weeks of inking a $5bn merger with cash-strapped Korean chip maker Hynix. Despite speculation at the beginning of December that talks were wavering, reports today in Korean media suggest the deal will be completed by the end of January. Earlier reports suggested that Micron will offer $4bn for Hynix's DRAM division, but Micron now looks set to offer $5bn after Hynix creditors pushed for an investment to cover the company's mounting debts. Hynix ran up $6.6bn in debt last year and was on the verge of bankruptcy before government-backed creditors handed it a $7bn bailout package. Under the terms of the rescue, debt rollover and debt-for-equity swaps will reduce the debt to under $5bn.
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