Blackstone to buy Micron?

POSTED: 12:53 MST Thursday, May 24, 2007

by Eddie Kovsky

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Tags - Micron

It’s everybody’s favorite rumor: a private equity buyout of Micron Technology. From Bloomberg:

Contracts to buy Micron stock for $12 by June 16 more than doubled to 55 cents and were the second-most actively traded options on a company stock today. A total of 94,322 Micron call contracts were traded as of 1:35 p.m. in New York, more than six times the average of the previous 20 days.
”There's a whole bunch of activity in Micron that suggests somebody really likes it,'' said Jon Najarian, co-founder of optionmonster.com, a Chicago-based provider of financial data on unusual trading. ”It's got the earmarks of someone who thinks they know something.''
Analysts including Eric Ross of ThinkEquity Partners in New York said there's speculation Blackstone Capital Partners LP, the manager of the world's second-biggest buyout fund, may be a buyer. Micron spokesman Daniel Francisco said the company doesn't comment on speculation. Blackstone spokesman John Ford did not immediately return a phone call seeking comment.

Read the whole story here.

4 Comments

Interesting. Blackstone bought Freescale Semiconductor late last year, and then went right out and said they were looking for more acquisitions in that space. Hmmm . . .
Comment By Chris Blanchard
Friday, May 25, 2007 @ 8:09 AM

Micron stock on May 25 ranged from $11.87 to $12.03 through 11:36 a.m. MDT, after opening at $11.98, according to Yahoo Finance.
Comment By Brad/IBR
Friday, May 25, 2007 @ 11:58 AM

Is Freescale the outfit that's developing a magnetic memory chip? With Intel going for ovonics... Both new directions have enormous [i.e., leapfrogging] potential for memory chips, yes? Meaning major shifts in the indsutry's competitive dynamics?
Comment By Norris
Friday, May 25, 2007 @ 1:01 PM

Who in their right mind would want to buy Micron? I find it interesting that nobody is mentioning the crushing legal liabilities Micron is facing. They are the ring leaders of a world wide conspiracy to fix DRAM prices in an attempt to kill off Rambus. They are liable for billions in damages... and their time to pay up is coming soon. Why would anyone even consider buying this company?
Comment By F. Macchiusi
Sunday, May 27, 2007 @ 11:51 PM

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