(Nikkei BP Group)
(No.1 High-Tech News Site in Japanese)
| LG Semicon Opposes Plan for New Consolidated IC Company
December 29, 1998 (TOKYO) -- LG Semicon Co., Ltd. said Dec. 24 that it
refused to accept a report released by the Korean affiliate of Arthur
D. Little Inc. of the United States, which gave its selection of Hyundai
Electronics Industries Co., Ltd. as the new corporate group to run the
entity to be formed through a merger of the two DRAM makers.
|The agreement on the merger of Hyundai Electronics and LG Semicon was
among the decisions reached at a recent meeting of government and business
leaders. Korean President Kim Dae-Jung and the owners of the five largest
"chaebol" industrial conglomerates participated in the meeting.
Arthur D. Little, a management consulting company, was designated by
the Federation of Korean Industries (FKI) to complete an assessment
of the business entity to become the merged microchip company.
Arthur D. Little assessed the technologies, production capabilities,
financial conditions, marketing capabilities and business management
levels of the two companies prior to making its recommendation.
It presented the report Dec. 24 to Hyundai Electronics, LG Semicon and
the concerned agencies of the Korean government that will oversee the
consolidation of the two companies.
"The report is lacking in fairness, and thus we cannot recognize it as
a valid evaluation for the new corporate entity," said Koo Bon-Joan,
president of LG Semicon. He refused to accept the report.
"If the report is done in a rational way and a thorough verification
is made, we would be willing to take part in discussions for selecting
the new corporate entity," Koo added.
In the agreement signed by the Korean government and the conglomerates
at the Dec. 7 meeting of political and business leaders, many items
were agreed upon. Among them is the statement: "If the final corporate
entity for the new company cannot be selected by Dec. 25, 1998, then
any new funds from banks will be stopped and debts will be collected
from the enterprise that disagrees."
Related story: Industry
Groups Agree on Merger of Hyundai, LG Microchip Units
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