Hynix makes bid to buy bankrupt Elpida Memory

Hynix Semiconductor, the world’s second-largest maker of computer memory chips, submitted an initial proposal to bid for Elpida Memory, the Japanese chipmaker that filed for bankruptcy last month.

The Korean chipmaker will decide whether to make a final bid after due diligence, Hynix said in a regulatory filing yesterday. Toshiba was also considering a bid, a senior executive for the Tokyo-based company said yesterday, asking not to be identified as the discussions are private.

Elpida filed for bankruptcy with liabilities of 448 billion yen ($5.5 billion) on Feb. 27, after falling prices and a stronger yen eroded its earnings, leaving it unable to pay debt. Hynix is seeking to narrow the gap with industry leader Samsung Electronics while fending off competition from smaller rivals including Micron Technology.

Bloomberg