After several waves of rumors it looks like a solution is starting to close in for Elpida, even if they still have a long way to go. An agreement doesn’t seem far away, and Micron is expected to be the winner in the negotiations.
The bidding for the old DRAM actor Elpida, where among others Micron, Toshiba and SK Hynix is supposed to have been present should be closed. Micron raised the stakes from before and is supposed to be prepared to pay $2,5 billion for the company, and at the same time they promise to keep Elpida’s factories open in Japan, and not make any cuts in staff. This was supposedly enough to make Elpidas CEO, Yukio Sakamoto wanting to continue the negotiating with Micron, and to have both Toshiba and SK Hynix withdraw from the bidding.
If the deal goes through Micron will pass SK Hynix in market shares, and get a second place after Samsung. The negotiations is still not closed, but it looks like Micron will be the winner in this deal and will be the new owner of Elpida. Even if Micron wins the agreement a last restructuring plan for Elpida will have to be approved by a local court and the creditor’s, since the company amassed $5,6 billion in debts before they applied for bankrupcy.
Source: New York Times
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