Delta Electronics denies interest in purchase of rival

Delta Electronics Inc (台達電子), the third-biggest maker of power supplies for computers, denied a report that said it would buy an unidentified US rival, among the six biggest in the world, for more than US$500 million.

The purchase would have resulted in Delta's displacement of Emerson Electric Co as the world's biggest maker of power supplies, a Chinese-language newspaper said, without citing a source of information.

Nevertheless, the company said it isn't in negotiations for any acquisition with a statement posted at the Taiwan Stock Exchange yesterday.

Delta spokesman Ben Liou also wouldn't comment on local media reports that the company would buy the fourth-largest power-supply business from UK-based Invensys Plc, which is trying to cut debt and sell assets as profits fall.

Delta had bid for Lucent Technologies Inc's power systems division last year, but the operation was eventually purchased by Tyco Electronics of the US. Some analysts said there is a possibility Delta may eventually acquire a firm to help beef up its power supply operations in the telecommunications sector, but nothing is expected to happen soon.

Meanwhile, Delta also declined to comment on the same report in the paper that said it recently won an order to make a third of power supplies for Sony Corp's PlayStation2 video-game consoles and two-thirds for Microsoft Corp's Xbox consoles.

The company's sales are expected to recover this year on more demand for Taiwan-made computers and computer components from customers such as Sony Corp as economies rebound worldwide. Delta said it expects to reach a revenue of NT$55 billion this year, up over 30 percent from the NT$42.6 billion recorded last year. Its shares closed unchanged yesterday at NT$61.