Sat, Jun 02, 2007 - Page 11 News List

Business Briefs

STAFF WRITER, WITH AGENCIES

Fuhwa, Jih Sun banks fined

The Fair Trade Commission yesterday slapped fines of NT$400,000 (US$12,120) on Fuhwa Bank (復華銀行) for attaching inappropriate clauses to its loans, which it said was a violation of Article 24 of the Fair Trade Act (公平交易法).

The commission demanded that the bank immediately remove the offending clauses.

Meanwhile, the Financial Supervisory Commission meted out fines of NT$2 million to Jih Sun International Bank (日盛國際商銀) on Thursday for flaws in its internal controls, which violate Article 45-1 of the Banking Act (銀行法).

The commission said one of Jih Sun's former managers used fabricated documents to apply for a loan. Because the bank's credit investigation and lending procedures were not properly implemented, Jih Sun suffered a loss of NT$27.66 million.

Prince denies Nova merger plan

Prince Housing and Development Corp (太子建設), a subsidiary of Uni-President Group (統一集團), yesterday denied a report that said it will merge with Nova Plaza, one of the nation's largest 3C (computer, communication and consumer electronics) retailers.

The construction firm said an asset management company, in which it holds a 29.48 percent stake, is in talks with Nova on the possibility of cooperation, but has not touched upon the merger and acquisition issue, it said in a filing to the Taiwan Stock Exchange.

Nova also denied the rumor.

Sunrise purchase announced

The board of Taiwan Cooperative Bank (合作金庫銀行), the nation's second-largest lender by assets, yesterday passed a proposal to jointly purchase Sunrise Asset Management Co (台陽投信) with BNP Paribas for NT$10.6 per share.

Taiwan Cooperative Bank and Paris-based BNP Paribas signed a memorandum of understanding in December to form an asset management joint venture and buy out a local securities investment trust firm this year.

Taiwan Cooperative Bank will hold a 51 percent stake in the Taipei-based asset management firm, while BNP Paribas Asset Management will hold the remaining 49 percent, according to a press release. The total consideration of the acquisition is expected to be NT$318 million (US$9.6 million).

The new company will be renamed to BNP Paribas TCB Asset Management Co (合庫巴黎投信).

Aromatics plant fire injures two

Formosa Chemicals and Fiber Corp (台化), a petrochemical maker controlled by billionaire Wang Yung-ching (王永慶), said a fire that broke out yesterday at the company's new aromatics plant injured two workers.

The fire, which startes at 8:55am in a chiller at the No. 3 Aromatics unit, was put out at 9:01am, spokesman Lu Shen-fu (呂勝夫) said in a statement to the Taiwan Stock Exchange yesterday.

Two workers who received minor burns were given medical treatment, he said. The fire didn't damage the chiller.

The plant produces benzene, paraxylene and orthoxylene, which are key ingredients in computer casings, polyester fibers, dyes and insecticides.

Central bank aids NT dollar rise

The New Taiwan dollar completed its biggest five-day rally since Dec. 1 on speculation the central bank stemmed a descent that last week reached a 17-month low.

The currency rose for a second week after the central bank said on Thursday that mutual funds should invest more in local stocks rather than sending money abroad.

The NT dollar climbed 0.7 percent this week to NT$33.009 against its US counterpart at the 4pm close of onshore trading, exceeding last week's 0.4 percent increase, according to Taipei Forex Inc.

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