UMC eyed for possible insider trading

A lack of simultaneous and fair disclosure in Taiwan following the US disclosure "is discriminatory toward local investors," Lin said.

The Taiwan Stock Exchange said yesterday that UMC's move will affect shareholders' views of the firms' credibility, and that this will be reflected in its share price.

"It is UMC chairman Robert Tsao's (曹興誠) freedom to express himself by taking out advertisements in his own name. But it is very inappropriate for him to do so to representing the whole company before getting approval from the board and shareholders," said TSE chairman Wu Nai-jen (吳乃仁).

In the letter, UMC said that since it had uploaded the disclosure on Business Wire -- a US Web site disseminating full-text announcements from companies and organizations worldwide -- it had effectively spread the same information simultaneously to the TSE as well as local media.

But Wu said that this does not mean that UMC sent its message "in parallel" to Taiwanese shareholders, especially to those who do not understand English.

Wu said that listed companies should not be lax as self-regulation is of paramount importance.

"TSE will apply the same standards to all listed companies, which is the same as what overseas regulators do. Stricter regulation is a global trend," Wu said.

future demand

The financial authorities are planning to demand in the future that locally-listed companies that are also publicly traded in foreign markets should simultaneously report to the nation's regulators when they make crucial announcements to foreign market regulators said Wu Tang-chieh (吳當傑), director general of the commission's Securities and Futures Bureau.

Earlier yesterday, the nation's lawmakers unanimously voiced their support of the commission taking a "tough" stance on UMC's public statement. They said that the chipmaker's neglect of the rights and interests of domestic investors and its disrespect for local financial regulators was unacceptable.