SAN FRANCISCO Oct 31 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.
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
The court said it dismissed a rival proposal by a group of
bondholders, led by hedge funds Linden Advisors, Owl Creek Asset
Management and Taconic Capital Advisors, who have said the
$2.5-billion price tag grossly undervalues Elpida, arguing that
the company is worth 300 billion yen ($3.78 billion).
Elpida, the last of Japan's dynamic random access memory
(DRAM) chipmakers, was driven into bankruptcy by falling chip
sales and foreign competition.
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.
The deal would catapult Micron into the No. 2 spot in the
global market for DRAM chips, behind Samsung Electronics
"We view this as a positive development, and continue to
expect Micron to close its Elpida acquisition by (the first half
of 2013)," Jefferies analyst Sundeep Bajikar said in a note to
Last week, a U.S. judge overseeing Elpida's parallel U.S.
case said the company was taking a risk by not keeping creditors
That U.S. judge would eventually have to approve the
transfer of U.S. assets.