Jonathan Liao (廖俊傑), an analyst with SinoPac Securities Corp (建華證券), said it is expected that the company can successfully be privatized this week, which will help pump nearly NT$100 billion (US$3.14 billion) into state coffers to help the government put a brake on its rising budget shortfall.
But because of the labor union's protest, the company's share price will lose momentum in the short term and do more harm than good, he said.
Chunghwa Telecom shares fell nearly three percent to close at NT$61.5 yesterday on the Taiwan Stock Exchange.
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