Hynix deal 'close'


Hynix is in talks with everyone in the industry, but favors Micron's overtures

SEOUL, South Korea (Reuters) -- Talks between South Korea's Hynix Semiconductor Inc and Micron Technology Inc will generate an outcome in the immediate future, a Hynix official said on Saturday.

The world's third and second largest memory chipmakers have been in negotiations since December to sell the memory chip unit of Hynix to Micron of the United States.

The talks have become bogged down over pricing of the chip unit.

Local reports said the creditors have narrowed differences with Micron to a great extent and both sides could seal a deal in the near future.

"An outcome of the talks with Micron will come out sooner rather than later," Kang In-young, a spokesman for Hynix said. "That's what our president Park Chong-sup told us."

She declined to elaborate further.

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Hynix open to all offers

The company's comment came a day after its main creditor said lenders of Hynix, spearheading talks with the U.S. chipmaker, were giving priority to a deal with Micron, although Germany's Infineon Technologies entered new talks with Hynix for cooperation.

Hynix creditors and Micron have been in a $2 billion price dispute. The lenders of Hynix, owed 8.6 trillion won ($6.59 billion) by the embattled chipmaker, have proposed close to $5 billion for Hynix's chip unit, but Micron says it is worth $3 billion.

Infineon's chief executive Ulrich Schumacher arrived in Seoul on Friday to hold talks with Hynix, which sources to close to the deal have said would focus on product development.

"Hynix is competitive enough to stay afloat," Schumacher told the Maeil Business Newspaper on his arrival at Inchon International Airport.

He did not give further details on negotiations with Hynix.

"A drastic change will take place in the global semiconductor industry as the top four players - Samsung Electronics Co, Micron, Hynix and Infineon - are seeking a broad range of dialogues," Schumacher told the newspaper.

He is scheduled to return to Germany on Saturday.

Separately, Micron's chief executive Steve Appleton made no appearance at a meeting with U.S. analysts on Friday, where he was widely expected to make a crucial comment on talks with Hynix, according to local media reports.

Selling Hynix's memory chip operations to Micron has been seen as key to saving the troubled local chipmaker from massive debts and expediting restructuring of the chip sector reeling from overcapacity and low prices.