SK Hynix pulls out of bid for Elpida Memory

AFP-JIJI

South Korea’s SK Hynix, the world’s second-largest microchip maker, said Friday it had withdrawn its bid for ailing Japanese chipmaker Elpida Memory.

“We decided not to participate . . . it doesn’t seem very advantageous strategically,” board Chairman Choi Tae Won said.

SK Hynix said in March it had submitted preliminary interest in bidding for Elpida, which filed for bankruptcy protection in February in Japan’s largest postwar corporate failure.

The South Korean company swung to a net loss of 271.2 billion won ($237.6 million) in the first quarter, as oversupply and weak demand for personal computers pressured memory chip prices.

The company said last week it aims to maintain a “minimum level” of cash holdings and would only consider investments that would not excessively burden its finances.

The Elpida bid came in March, a month after South Korea’s largest mobile carrier, SK Telecom, completed the acquisition of a controlling 21.1 percent stake in Hynix for 3.34 trillion won ($2.95 billion).