Published in News
Tokyo court gives thumbs up to Micron
by Nick Farrell on01 November 2012
Can buy Elpida
Micron's plan to buy Japanese memory chipmaker Elpida was given the thumbs up by a Tokyo court after it approved the agreement and dismissed a rival plan promoted by a group of bondholders.
The bankrupt Elpida's plan to be bought by Micron has been referred to creditors for approval. The court dismissed a rival proposal by a group of bondholders, led by hedge funds Linden Advisors, Owl Creek Asset Management and Taconic Capital Advisors, who have said the $2.5-billion price tag grossly undervalues Elpida.
They argued that that the company is worth $3.78 billion. However Elpida was driven into bankruptcy by falling chip sales and foreign competition. Micron is losing money due to a crumbling PC industry, wants to create larger economies of scale and offered in early July to buy Elpida for about $750 million in cash and to pay creditors a total of $1.75 billion in annual instalments through 2019.