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Shareholders extend deadline for Hynix stake bids

SEOUL (Reuters) - Shareholders of Hynix Semiconductor have extended the deadline for preliminary bids for a controlling stake in the memory chip maker, in their latest efforts to find a buyer before turning to market sales.
Creditors-turned-shareholders of Hynix are hoping to sell up to a 28 percent stake in the world's second-biggest memory chip maker, worth $3.15 billion at the current market value, through a local auction.
But their second auction failed to draw a single bidder by the initial Friday deadline for letters of interest. An earlier auction fell through last November after sole bidder Hyosung walked away from the process.

Leading shareholder Korea Exchange Bank said the deadline had been extended by two weeks until February 12 to give potential investors more time to consider the deal.
Concerns over a share overhang and discounted sales have pressured Hynix shares as many investors and analysts expect shareholders to offload stakes in parts in the market if they fail to find a buyer.
Hynix shares were down 3.08 percent at 0243 GMT, compared with the wider market's 0.37 percent loss, after losing 13 percent last week alone.
While the memory chip industry is rebounding in an upcycle, its highly cyclical nature and heavy requirements have limited investor appetite for Hynix, which competes with Samsung Electronics and Japan's Elpida Memory.

Posted by CBN Extra Staff on 04 Feb 2010 [07:09] | Comments 0 |