The giant memory chip firms confirmed yesterday in separate statements that the planned partnership, dubbed Numonyx, has been pushed back to 28 March next year. The deal had been expected to be completed by the end of this year, but serious cash problems will put the deal on hold for a while. In May $1.55bn had been offered in debt financing for the new Geneva-based company. Lenders have now significantly reduced that figure, to $650m along with a further $100m in a revolving credit facility. Intel said: "We are in the process of renegotiating credit agreements, and clearly [the total] will be less. "The markets have changed significantly since we first announced the deal." The new venture could have annual revenue of up to $3.6bn and will create products for mobile devices such as MP3 players and digital cameras. Once the deal finally completes, Intel will take a 45.1% stake while STMicro will take 48.6%. Francisco Partners, a Silicon Valley-based private equity group, will invest $150m for a 6.3%.
Source: Hexus.net