Hynix reneges on Micron deal

NEWS Just a week after signing a memorandum of understanding to sell its business to Micron, semiconductor giant Hynix has rejected the proposed deal. In a statement, the firm, which has been involved in negotiations with Micron for over six months, said it had decided the venture was too risky to proceed. The statement said: "We have reached the conclusion that there are too many problems with the creditors' post-merger restructuring plan for the remaining company." It also suggested the share deal did not value Hynix highly enough. The statement went on to say the recent upturn in the semiconductor industry means Hynix can now survive as an independent company. Last week it looked like months of speculation had culminated in a $3.4bn deal in which Micron would buy the bulk of Hynix. However, for the third time, eleventh hour concerns from Hynix prevented the merger being completed.