STX Quits Bid to Control Chip Maker Hynix

STX Corp. on Monday dropped its bid for a controlling stake in South Korean chip maker Hynix Semiconductor Inc. due to market uncertainties and financial burden, leaving SK Telecom Co. as the sole bidder for the chip maker in a deal worth at least three trillion won ($2.7 billion).

Analysts expect SK Telecom, the country’s largest mobile carrier, to have the upper hand in negotiations with Hynix’s creditors-turned-shareholders over price and other terms because it is unlikely any other bidders will emerge.

“Chances are high global economic uncertainties stemming from the euro-zone debt crisis will last a long time,” STX Group said in a statement. “Moreover, it is too burdensome [for STX] to continue investments in memory and non-memory chip facilities [after the acquisition] amid lingering uncertainties,” it added.

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