Hynix team arrives for new round of talks with Micron

Although a merger is still very likely, memory chip makers Micron and Hynix

apparently still have a lot of negotiating left to do as Hynix team arrived in

Boise, Idaho for a third round of talks. The Hynix delegation is headed by

company president Park Chong-sup. He will deliver Hynix's reply to Micron's $3.2

billion takeover proposal.

Chong-sup said he hopes the talks will result in the signing of a letter of

understanding on the terms of the merger. Major stumbling blocks remain the

take-over price and the amount of Hynix debt that Micron will assume or pay off.

Micro has refused, so far, to assume any of the $6 billion in bank debts. But

that in turn has caused Hynix's creditors to seek a much higher take-over price.

Another problem is the tough negotiating tactics for which Korean businessmen

are famous. These tactics can easily stretch the negotiations into a fourth and

fifth round before a deal is reached that both sides can agree on. Combined,

Hynix and Micron will control 38 per cent of the global DRAM market Micron and

Hynix are the world's second and third largest chipmakers, respectively, more

than the 20 per cent currently controlled by Samsung.