MEMORY MAKER Micron has finally announced that it is in discussions to buy bankrupt competitor Elpida.
As Elpida hit the buffers earlier this year, Micron was quickly installed as the likely candidate to buy its assets, and as Hynix pulled out of bidding, Micron remained the quiet favourite. Now Micron has broken its silence to say it is in talks with Elpida over a possible buyout.
Micron said Elpida had decided to proceed with negotiations, installing it as a potential sponsor. According to Micron, the announcement of talks came after approval by the Tokyo District Court yesterday approved negotiations between Elpida and Micron to nominate Micron as Elpida's 'sponsor' and purchase the firm.
Elpida declared bankruptcy after it was unable to service its $5.5bn debt. Although Elpida is one of the largest DRAM manufacturers, the market is so poor that when Hynix announced it had no interest in buying Elpida, its share price jumped.
Should Micron buy Elpida, it could end up competing with Samsung and Hynix, however the DRAM market will need to improve significantly for the US firm to recoup its investment. µ
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