Creditors of Hynix Semiconductor may want Micron Technology to pay $5 billion for assets under a deal aimed at reviving the unprofitable memory chip industry, a Hynix official said on Friday.
The comment followed a report that U.S.-based Micron, the world's second largest memory maker, plans to offer a stake in itself worth $4 billion to $5 billion in exchange for third-ranked Hynix's core memory chip operations.
"I think creditors want that amount, which is just equivalent to their six trillion won ($4.61 billion) in exposure to us," a Hynix official, who asked not to be named, told Reuters.
Creditors rescued South Korea's Hynix from collapse twice last year, including a $7 billion bailout in October that included converting debt into equity, debt rollovers and write-offs.
Micron and Hynix announced alliance talks in December that Hynix expects to complete this month, but have given few details on what they are discussing.
Hynix has said it will involve a broad alliance or one focused on dynamic random access memory (DRAM), the memory used in personal computers which accounts for almost two-thirds of its revenues.
The Korea Daily News, quoting an unnamed creditor bank official, said Micron plans to offer Hynix a stake worth $4 billion to $5 billion in exchange for Hynix's DRAM operations.
Micron spokesman Sean Mahoney told Reuters the report was "premature." "Talks are continuing and no definitive agreement has been reached or proposal made,'"he said.
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