Hynix may consider STMicroelectronics shares rose convertible case

According to the Seoul electric Reuters Korea semiconductor manufacturers Hynix semi-derived Thursday surged 9%, because the company sources said, STMicroelectronics (STM has proposed to cooperate with the Hynix in the memory chip business.

However, the source denied that the South Korean newspaper today, the Italian law has proposed to exchange Hynix stake in some chip production lines.

The unnamed source said on the phone: STMicroelectronics has proposed cooperation in the memory chip business, but the proposal did not include any details of the program, we did not negotiate with them...... But if we come up with specific proposals, we might consider."

South Korean Economic News quoted an industry source as saying on Thursday, Italy has proposed to the company's NOR flash part of the production line, the exchange of Hynix stake in 5-10%.

Hynix's creditors, a total of 81% stake in the company, worth about $7 trillion and 370 billion (trillion) won ($7 billion 110 million). Creditors plan by the end of the year will be reduced to about 50% stake.

There is no immediate response to the stmicroelectronics. Hynix and Italian law has signed a strategic alliance to jointly develop NAND flash. The two companies and $2 billion to build a NAND and dynamic random access memory (DRAM) in the Chinese factory.

Product diversification, creating a win-win situation

Last month, the Italian chief executive told a German newspaper that the law does not rule out an Asian Partnership to increase market share in asia.

Hynix shares rose 9.3% to $22250 won, the highest since April 2002, when 0400GMT rose by 7.8%, the overall market share index rose by $1.17%.

"Hynix is likely to diversify the product," says JaeH.Lee, a research firm. Instead of just one memory and one flash." And said, STMicroelectronics can also benefit from a more diversified products.

Hynix creditors on Tuesday ended a four year debt restructuring plan. Creditors in April to reach a consensus on the decision to complete the original end of the original debt restructuring plan by the end of 2006, due to the improvement of Hynix profit, but on the proviso that, Hynix debt repayment in the end of the year before the expiration of the debt in.

South Korea's main bank of foreign exchange bank said on Tuesday, after the end of the debt restructuring plan, the 24% stake held by the creditors will be accelerated in the second half.