Einhorn's Greenlight discloses stake in chipmaker Micron

SAN FRANCISCO Mon Nov 25, 2013 6:15pm EST

SAN FRANCISCO Nov 25 (Reuters) - David Einhorn's hedge fund Greenlight Capital reported a stake of about 23.02 million shares in U.S. memory chipmaker Micron Technology, according to a filing on Monday.

The disclosure of the stake, equivalent to about 2 percent of Micron, comes after Einhorn said last week he had invested in the chipmaker because it stands to benefit from industry consolidation.

Einhorn made the comments, which contributed to a rally in Micron's shares, in an interview aired on CNBC after speaking at an investor conference in New York City that was closed to the media.

At the end of July, Micron, based in Boise, Idaho, completed its acquisition of failed Japanese memory chipmaker Elpida in a move to create economies of scale and better challenge memory chip leader Samsung Electronics.

After a deep memory chip price slump last year that led some chipmakers to throttle back production, prices for DRAM and NAND chips made by Micron, Samsung Electronics and SK Hynix have increased this year.

Shares of Micron rose 0.30 percent in extended trade following Greenlight's disclosure. Earlier, Micron's stock closed down 1.63 percent at $19.86 in regular trade on the Nasdaq.

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