GigaMedia's board rejects buyout offer

GigaMedia Ltd (和信超媒體), one of the country's largest Internet service providers, rejected a management group's offer to buy the company and take it private for about US$65.2 million and said chairman Nelson Chang (張安平) will step down from the board.

The company's seven officers boosted their offer last month to US$1.30 a share from US$1.20 for all of GigaMedia's stock.

A special committee recommended that the board not pursue the offer, Taipei-based GigaMedia said in a statement. No reason was indicated in the release and a voice-mail message left with company spokesman Brad Miller wasn't immediately returned.

Chang's resignation, which is effective at the close of business today, was contingent on the board's decision about the buyout offer, the company said.

GigaMedia has been unprofitable since the company's shares began trading on the NASDAQ in February 2000.

Daniel Wu (吳春台) and Tsai Gwo-yeu (蔡國嶼) were named directors, replacing Richard Yang and David Chuang, who resigned for personal reasons, GigaMedia said.

Wu is chairman of Grand Pacific Petrochemical Corp (國喬石化), Biocare Corp (喬聯科技) and Videoland Inc (緯來電視), while Tsai is chief secretary of Taiwan Cement Corp's (台泥) board.