Micron wins exclusive right to bid for Elpida: source By Maki Shiraki TOKYO (Reuters) - Micron Technology has won the right to negotiate exclusively to buy Elpida Memory Inc after offering more than 200 billion yen ($2.5 billion) for the failed Japanese chipmaker, a source with knowledge of the transaction said. Elpida has been searching for an investor to sponsor its restructuring after filing for bankruptcy protection in February with 448 billion yen ($5.6 billion) in liabilities, hit by a strong yen and a slide in prices of DRAM computer chips. In the final round of bidding that closed last Friday, Micron also offered to keep Elpida's two main factories in Japan open and to guarantee jobs for the company's current employees for the time being, the source said. Those promises helped it outmaneuver South Korea's SK hynix, which dropped out of the race on Friday. Private equity firm TPG Capital LP and China's Hony Capital had intended to place a joint bid in the final round, sources told Reuters previously. Micron's offer was accepted by Elpida's trustees and management, the source said. A final restructuring plan will still require the approval of a local court and Elpida's creditors, not all of which may be happy with the deal. Last week, a group of debt holders said they may submit a rival reorganization plan if trustees agreed to a low-ball bid, referring to a previous media report that put Micron's first-round offer at 150 billion yen. The company's failure was the largest ever by a Japanese manufacturer and an embarrassment for the government, which had propped up Elpida with public funds to save what was billed as the country's last hope for the DRAM market. Elpida, formed over a decade ago, ranks third in the DRAM market. Earnings have been hit hard by the strong yen, which puts it at a disadvantage against well-funded South Korean rivals such as industry leader Samsung Electronics. But analysts are positive about the outlook for Elpida DRAM chips for mobile devices, an area that contributed 50 percent of its revenue in the latest fiscal year to March while only accounting for 15 percent of the memory capacity it produced. The auction for Elpida has been overseen by Elpida CEO Yukio Sakamoto and lawyer Nobuaki Kobayashi, the court-appointed trustees. The trustees and Elpida executives met on Sunday to select their preferred investor, the source said. Elpida previously said it may submit its restructuring plans to a local court by August 21. Micron officials were not immediately available to comment. Elpida's Sakamoto declined to comment. Additional reporting by Junko Fujita; Editing by Ryan Woo