AU Optronics shares sold at discount

Some 5.548 million shares of the world's No.3 maker of flat panels, AU Optronics Corp (友達光電), were sold at a 3.21 percent discount via block trading yesterday after major shareholder BenQ Corp (明基) said it planned to unload up to 100 million shares.

During the after-hour block trading, AU Optronics shares were traded on an average of NT$45.78 per share, lower than the stock's closing price of NT$47.30 on the Taiwan Stock Exchange. The turnover amounted to NT$2.54 billion (US$167 million).

Local mobile phone maker BenQ said on Tuesday that it planned to sell off its 1.32 percent holding in AU Optronics as part of a plan to raise funds to repay debts. It said, however, that no transaction was made yesterday.

"We are still in talks with five interested investors," an official of the company's public relation department said.

BenQ declined to comment on whether Cathay Financial Holding Co (國泰金控) was on the list. The firm holds an 8.42 percent stake in AU Optronics.

BenQ is under pressure to boost its net value. The company's debt ratio rose to 43 percent as of the end of last year.

The company said it planned to raise NT$10 billion in cash to repay debts by selling assets.

BenQ raised NT$4.5 billion by issuing corporate bonds of AU Optronics during the fourth quarter of last year.