Quanta denies joint venture report

Quanta Computer Inc (廣達電腦), the world's largest notebook computer contract maker, yesterday denied a report saying it would launch a joint venture with Hon Hai Precision Industry Co (鴻海精密).

Quanta's shares closed unchanged at NT$56 on the Taiwan Stock Exchange, while Hon Hai was down 4 percent to NT$283.

The Chinese-language Apple Daily reported yesterday that Quanta would collaborate with Hon Hai, the world's largest maker of electronics parts, in a venture focusing on component production.

The new firm is to be set up by early next year, the paper claimed, adding that it will be called Q Bus Inc and that Quanta will hold a 50 percent share. The remaining stake is to be divided between Hon Hai and its affiliates, it said.

Although both companies have repeatedly denied that a merger is in the making, industry sources told the Taipei Times last week that Hon Hai and Quanta had signed a memorandum of understanding on an unknown topic.

The pending resignation of Quanta president Michael Wang (王震華) sparked further speculation that a merger was under way.

In related news, Hon Hai yesterday denied it had any intention of buying a stake in South Korea's LG Philips LCD Co after a report in the Chinese-language Economic Daily News said it may buy a 10 percent to 15 percent stake.

Additional reporting by Lisa Wang