Message: Should EDIG sue or buy Spansion?
Probably neither, but this market will offer up many more spansion like deals if conditions resume on the current path.
It took ptsc a couple of years to get its merger and acquisition act together....hopefully EDIG will learn something from that and acquire multiple business that will take them in new directions.
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Spansion up for sale, seeks partners |
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EE Times (01/15/2009 10:26 AM EST)  SAN JOSE, Calif. -- NOR-flash memory leader Spansion Inc. more or less put itself up for sale. The company confirmed that it has been exploring strategic alternatives, ''including, but not limited to, opportunities to merge with or sell to similar U.S. or foreign businesses.''
Spansion (Sunnyvale, Calif.) has engaged Barclays Capital to assist the company in exploring these strategic alternatives. Spansion has also initiated discussions to restructure its balance sheet. In anticipation of this process, Spansion has decided to delay making the interest payment on its outstanding 11.25 percent Senior Notes due 2016, which is due Jan. 15, 2009. Under the indenture governing the 11.25 percent Notes, a failure to make an interest payment is subject to a 30-day cure period. Amid a string of losses, declining funds and a major downturn, Spansion recently implemented another round of cost-cutting measures. Rumors are also running rampant that Spansion is mulling a plan to file Chapter 11 protection of the U.S. Bankruptcy Code. The company declined to comment. At one time, there were other rumors about Spansion, including a report that Japan's Toshiba Corp. would acquire the company. Spansion, previously a joint venture of Advanced Micro Devices Inc. and Fujitsu Ltd., is the world's leader in NOR flash. But since the spin-out of the firm, Spansion has failed to make money. Spansion competes with Numonyx, Samsung and others. Numonyx is a joint venture between Intel Corp. and STMicroelectronics Inc. |
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