Micron Tech Pops 10% as Elpida Memory Files for Bankruptcy
Shares of Micron Technology (NASDAQ: MU) are seeing much strength after Japanese competitor Elpida Memory files for bankruptcy.
Elpida Memory filed the petition for the commencement of the corporate reorganization proceedings with the Tokyo District Court on February 27, 2012, to rebuild its business with the selection of a sponsor and its assistance in view under the and supervision of the Tokyo District Court and Atsushi Toki, attorney-at-law, who is the Supervisor and Examiner, and will make best and concerted efforts so that Elpida can secure as much repayment funds as possible for the creditors.
Elpida Memory, with a market-cap of 1.2 billion, directly competes with Micro Technology in its dynamic random access memory [DRAM] business, primarily used in PCs. Now, rumors circulate that Micron may acquire parts of Elpida for pennies on the dollar as Elpida looks to restructure.
Currently, shares of Micro Tech are trading about 10% higher, at $8.74 per share.
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