Hynix, in its attempt to sell itself to the highest bidder, only has one option left – as STX gave up because of an uncertain market.
The deal is thought to reach $2.7 billion and SK Telecom is the only interested party left. SK owns South Korea’s mobile carrier market and is in talks with Hynix about price already. As the Wall Street Journal reports, industry watchers believe another bidder is unlikely.
STX Group said it simply doesn’t have the time or the resources to commit to Hynix. In a statement, STX declared it “burdensome” for the group to continue investing in memory and non-memory chip facilities. Not only that, but the umbrella company, which has its fingers in many different pies, suggested its Abu Dhabi partner Aabar was acting up on the deal.
Dropping Hynix has boosted its shares, while SK and Hynix saw the stock market cast an unfriendly gaze over both, dropping 3.5 percent and 4.1 percent respectively.
The deadline is fast approaching, with a date set for final bids at 24 October. That’s when Korea Exchange Bank will make up its mind about whether or not to let the sale go through.
At the moment, it’s looking like poor Hynix is still struggling to find that all-important buyer, and anyone who goes near the sale is being punished in the markets.