CDFH cuts premium
China Development Financial Holding Corp, Taiwan's third-largest financial services company by market value, lowered the premium it's paying for shares of Grand Cathay Securities Corp (大華投信) by about two-thirds.
China Development will offer one share for every 0.9781 shares in Grand Cathay, it said in an e-mailed statement. That values the brokerage at about NT$12.52 a share, 2.66 percent more than Friday's closing price and less than the 9 percent premium proposed in April.
Grand Cathay share price rose as much as 25 cents, or 2.1 percent, to NT$12.45 at 10:02am in Taipei. China Development shares rose NT$0.1, or 0.8 percent, to NT$12.35.
China Development previously offered to pay one share for every 1.2 shares in Grand Cathay it doesn't already own. China Development, which already holds 62 percent of Grand Cathay, wants to expand its stock-trading business to compete in an increasingly deregulated financial industry.
It also said it will pay one share for every 2.0378 share of First Taiwan Securities Co.
NT dollar declines
The New Taiwan dollar fell below Friday's 15-year low after a terrorist bomb killed at least 216 people at a Bali nightclub, fueling concern that overseas investment and tourists may shun Asia. The NT dollar closed down NT$0.011 to close at NT$35.168 against its US counterpart. Turnover was US$355 million.
STaff writer, with agencies
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