Bondholders of Elpida Memory asked a Japanese court to
reject Micron Technology's planned 200 billion yen
takeover of the bankrupt memory-chip maker, arguing that it
undervalues the company's assets, a court filing shows.
The group of bondholders plans to propose an alternative to
Micron's deal announced this month, according to a copy of
a filing in Tokyo District Court, a translation of which
was submitted July 9 in U.S. Bankruptcy Court in
Wilmington, Delaware. Elpida filed for bankruptcy
protection in February.
Micron agreed to buy Elpida in a deal that would double the
U.S. company's share of the global market for dynamic
random access memory. The deal would help Micron compete
with Samsung Electronics.
Elpida and Micron have not commented on the report.
Last week, Micron agreed
to acquire Elpida's equity for 60 billion yen
($753.7 million) and pay creditors a total of 140 billion
yen in annual installments until 2019. Micron will also buy
a 24 percent stake in Taiwan-based Rexchip Electronics
from Powerchip Technology for $334 million.