| Dongbu Seeks IBM's Equity Participation in Semicon Biz
April 22, 1998 (SEOUL) -- The Dongbu Group, which recently formed
a strategic alliance in semiconductors with IBM Corp., is seeking
a 10-percent equity participation from the U.S. computer giant.
|Dongbu Group officials said April 20 that the new semiconductor
subsidiary wants to increase its capital by about US$600 million,
half of which will be met through foreign investment and the
issuance of convertible bonds.
As foreign investors, the Dongbu Group decided to hand over 10
percent of its total equity to its technology partner, IBM, in
return for investment, the officials said.
Also, the group is considering other equity participation from
U.S. investment fund companies.
The Dongbu Group planned to produce memory chips, including 64M
DRAMs, but it delayed its project for up to nine months since it
suffered a capital shortage after the International Monetary
Fund's retrenchment program.
There also are rumors that IBM is being sought for investment by
Taiwan-based Acer Computer Inc., which recently ended a tie-up
with U.S.-based Texas Instruments Inc.
However, analysts said IBM's investment in Dongbu is more likely
than in Acer, considering IBM's technology transfer and its
stable supply channel to Dongbu.
(Maeil Business Newspaper, Korea)