UMC shareholders may raise US$690m

United Microelectronics Corp (UMC, 聯電) shareholders may raise as much as US$690 million selling shares in the company to foreign investors, taking advantage of the difference between the local and overseas prices of the stock.

SanDisk Corp, Chiao Tung Bank (交通銀行) and Taiwan's National Stabilization Fund (國安基金) own local shares in the second-largest contract chipmaker and received approval from the Taiwan Securities and Futures Commission Wednesday to convert them into global depositary receipts.

Based on the premium of UMC's American depositary receipts, which ended trade at US$7.7 Wednesday in the US, the shareholders can get as much as 24 percent more selling 447.8 million ordinary shares converted into 89.6 million GDRs.

Under Taiwan regulations, shareholders must obtain a company's permission and backing to switch shares into depositary receipts. UMC requires shareholders to hold a minimum 0.04 percent stake for at least a year before seeking an exchange.