On May 2, 2002, Micron withdrew its offer to acquire Hynix, stating that it was no longer interested in the deal.
According to Micron CEO, Steve Appleton, the stumbling block was the preliminary negotiations. The parties involved were unable to come up with a preliminary agreement, thus discouraging Micron to go through with any more talks.
However, Korea Exchange Bank President, Kang Won Lee believes that future negotiations with Micron are still possible. He hopes to resume talks with Micron in the near future.
In order for the Micron-Hynix deal to resume, creditors are prepared to replace Hynix’s board of directors after they rejected the initial deal. Creditors plan to convert $2.3 billion in bonds to Hynix shares, which would give them a 70% interest in the company. They could then replace the board of directors and push the deal through.
Micron was to acquire 108.6 million shares of Hynix, under the deal, valued at $3.8 billion at the time. Currently, the stock is worth about $2.7 billion. The company was also expected to pay an additional $200.0 million in cash for a 15% interest in Hynix’s remaining non-core operations.
