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Micron Technology Inc., the largest U.S. largest memory chipmaker, rose as much as 9 percent after the company took steps to make a takeover more difficult, sparking speculation that the company is a target. Micron’s board of directors adopted a “poison pill,” a rights issue that would be triggered if an individual or group acquires 4.99 percent or more of the company’s outstanding stock. It’s designed to deter unwanted buyout overtures and allow the company to retain tax benefits related to prior losses, Micron said Monday in a regulatory filing.
Any thoughts on this? Who would acquire Micron? Is Intel in a strong enough position to do this? I will be in China this month and will look into that angle but I'm wondering who else can acquire Micron and at what price?
I hold a position in MU and feel they might have a lock on a technology that will have legs for about five years, until the next wave comes on. I'm in at the high 13 range and suffered for a while. I got a friend in at an average of 10, he's very happy. Some big Wall Street money got in at 27. I look for the stock to go to twenty in the next year or so and they go up by at 20% and dropping to ten percent annual gains over the next four years after hitting twenty.
Intel would seem to be the most likely suitor. They make a terrible acquisition every two years, and the Altera acquisition was a year ago now. So they will be due to do something stupid again in 2017.
DRAM is a terrible business to be in at the moment. A huge over supply is driving the prices down. As well as that Samsung has the technical edge over Micron.
DRAM is a terrible business to be in at the moment. A huge over supply is driving the prices down. As well as that Samsung has the technical edge over Micron.
Besides Chinese (who, with Tsinghua Unigroup failed 23B$ bid on Micron followed by 5.3B$ on 20% of Hynix, already missed twice their attempts to buy last year significant stake in foreign companies to built their memories semiconductor industry) I don't see anybody that could be interested (while having enough money) for such commoditized, less and less strategic, semiconductor segments.
in the meantime, Chinese finally building their own memories capacity will contribute (whenever successful) to industry overcapacity that may further destroy Micron margins/value down the road...at a level that would not be compatible with Intel margins requirements.
Intel would seem to be the most likely suitor. They make a terrible acquisition every two years, and the Altera acquisition was a year ago now. So they will be due to do something stupid again in 2017.
