{"id":25588,"date":"2012-11-01T09:11:44","date_gmt":"2012-11-01T07:11:44","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=25588"},"modified":"2012-11-01T16:19:26","modified_gmt":"2012-11-01T14:19:26","slug":"micron-elpida-acquisition-gets-approval","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/hardware\/25588\/micron-elpida-acquisition-gets-approval\/","title":{"rendered":"Micron-Elpida acquisition gets approval"},"content":{"rendered":"

Micron Technology<\/a>‘s plan to acquire Japanese memory chipmaker Elpida<\/a> took a big step toward completion after a Tokyo court approved the agreement and dismissed a rival plan promoted by a group of bondholders.<\/p>\n

A district court in Tokyo said on Wednesday it was referring bankrupt Elpida’s plan to be bought by U.S. chipmaker Micron to creditors for approval, according to a news release on Elpida’s website.<\/p>\n

The court said it dismissed a rival proposal by a group of bondholders, led by hedge funds Linden Advisors<\/a>, Owl Creek Asset Management<\/a> and Taconic Capital Advisors<\/a>, who have said the $2.5-billion price tag grossly undervalues Elpida, arguing that the company is worth 300 billion yen ($3.78 billion).<\/p>\n

Elpida, the last of Japan’s dynamic random access memory (DRAM) chipmakers, was driven into bankruptcy by falling chip sales and foreign competition.<\/p>\n

Boise, Idaho-based Micron, which 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 installments through 2019.<\/p>\n

The deal would catapult Micron into the No. 2 spot in the global market for DRAM chips, behind Samsung Electronics<\/a>.<\/p>\n

“We view this as a positive development, and continue to expect Micron to close its Elpida acquisition by (the first half of 2013),” Jefferies<\/a> analyst Sundeep Bajikar said in a note to clients.<\/p>\n

Last week, a U.S. judge overseeing Elpida’s parallel U.S. case said the company was taking a risk by not keeping creditors better informed.<\/p>\n

That U.S. judge would eventually have to approve the transfer of U.S. assets.<\/p>\n

Related articles<\/strong><\/p>\n

Elpida bondholders attempt to block Micron deal<\/a><\/strong><\/p>\n

Elpida bondholders to oppose Micron takeover<\/strong><\/a><\/p>\n

Micron forking over $750m for Elpida Memory<\/strong><\/a><\/p>\n

Micron wins Elpida bid<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Micron Technology’s plan to acquire Japanese memory chipmaker Elpida took a big step toward completion after a Tokyo court approved the agreement and dismissed a rival plan promoted by a group of bondholders.<\/p>\n","protected":false},"author":7,"featured_media":4145,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22],"tags":[185,25,143,997,4517],"class_list":["post-25588","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hardware","tag-acquisition","tag-active","tag-elpida","tag-micron","tag-tokyo"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/25588","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=25588"}],"version-history":[{"count":4,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/25588\/revisions"}],"predecessor-version":[{"id":25666,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/25588\/revisions\/25666"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/4145"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=25588"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=25588"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=25588"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}