News & Analysis
Shipping firm drops Hynix bid
9/19/2011 9:00 PM EDT
SAN FRANCISCO—South Korea's STX Group dropped out of the bidding to acquire a controlling 20 percent stake in Hynix Semiconductor Inc., leaving SK Telecom Co. as the only bidder, according to reports.
STX, a ship building and shipping group, dropped its bid amid global economic uncertainties and concerns over investments needed to keep Hynix competitive, according to a Bloomberg report, which cited a statement released by STX.
SK Telecom, South Korea's largest mobile phone carrier, is now the sole remaining bidder for the 146.1 million share stake in Hynix, which is valued at about $2.7 trillion based on Hynix's stock price, according to the report.
STX, a ship building and shipping group, dropped its bid amid global economic uncertainties and concerns over investments needed to keep Hynix competitive, according to a Bloomberg report, which cited a statement released by STX.
SK Telecom, South Korea's largest mobile phone carrier, is now the sole remaining bidder for the 146.1 million share stake in Hynix, which is valued at about $2.7 trillion based on Hynix's stock price, according to the report.
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resistion
9/19/2011 9:52 PM EDT
It's an odd bid. I guess it is trillion won. Maybe a bank or VC will step in?
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peter.clarke
9/20/2011 8:24 AM EDT
Well the banks that converted the debts Hynix owed them into equity nearly a decade ago are trying to get out, so I doubt it.
You may remember that the debts, to a consortium of banks, built up when Hynix was bailed out to prevent it disappearing after a DRAM market collapse.
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resistion
9/20/2011 8:51 PM EDT
@Peter, I had forgotten about its debt situation, thanks for the reminder. If there are no takers, what will the South Korean govt do?
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