Thu, Oct 18, 2007 - Page 11 News List

Business Briefs

AGENCIES

Taiwan stocks downgraded

Taiwan's stocks were downgraded at Nomura Holdings Inc on concerns overseas demand will weaken and the nation's central bank will increase interest rates in a bid to contain inflation.

Investors should be "bearish" on Taiwan's equities rather than "bullish," Sean Darby, head of regional strategy at Nomura in Hong Kong, said in a telephone interview.

"Taiwan is still fighting a modest inflation battle, so rate tightening may be a feature of that economy," Darby said.

"We are starting to see weakness in new orders growth from overseas" for Taiwanese products, Darby said.

Tatung buys Proview stake

Tatung Co (大同), Taiwan's oldest household appliance maker, paid about NT$652 million (US$20 million) to gain a 16.2 percent stake in flat-screen television and computer-monitor maker Proview International Holding Ltd (唯冠).

Tatung bought 125.19 million Proview shares for NT$5.21 apiece through an investment unit, the company said in a filing to the Taiwan Stock Exchange on Tuesday.

Galaxy, Gateway merge

Acer Inc said yesterday that its wholly owned subsidiary, Galaxy Acquisition Corp, has completed the process of merging with Gateway Inc of the US.

As a result of the merger, outstanding shares of Gateway common stock were converted into shares with rights to receive US$1.90 in cash per share, it said.

The merger followed Acer's successful completion of its tender offer, through Galaxy Acquisition, for Gateway last week.

According to Acer, a total of about 322.93 million Gateway shares had been validly tendered and not properly withdrawn, and they had all been accepted by the Taiwanese firm for purchase.

The shares represent approximately 86.09 percent of Gateway's outstanding common stock on a fully diluted basis.

Chia Hsin offer accepted

A unit of Taiwan Cement Corp (TCC, 台灣水泥) had its HK$5.92 billion (US$763 million) all-stock offer for Chia Hsin Cement Greater China Holding Corp accepted, increasing its facilities in China.

About 89 percent of Chia Hsin China's minority shareholders approved the offer from TCC International Holdings Ltd, the two companies said in a Hong Kong stock exchange statement today. Chia Hsin China's parent had already accepted it.

The acquisition will give Taiwan Cement factories in southern and eastern China, the country's fastest growing regions.

TCC offered 0.4545 new shares for each of Chia Hsin China's, it said in a June 15 statement. The value of the deal was calculated based on TCC's closing price today of HK$11.40. Chia Hsin China, a unit of Chia Hsin Cement Corp, had 1.14 billion shares outstanding as of Sept. 28, according to data compiled by Bloomberg.

Shares close lower

Shares closed 0.32 percent lower yesterday as a result of Wall Street's extended pullback overnight and another spike in oil prices to fresh record highs, dealers said.

A positive performance by Intel and Yahoo in US after-hours trading, after reporting upbeat earnings, helped support select local semiconductor shares, they said.

The TAIEX closed down 30.31 points at 9,562.16, on turnover of NT$143.84 billion (US$4.4 billion).

Decliners led risers 1,139 to 736, with 312 stocks unchanged.

On the foreign exchange market, the New Taiwan dollar closed the day's trading at NT$32.605 over the US dollar, down NT$0.008 from the previous close of NT$32.597. Turnover was US$1.189 billion on the Taipei Forex Inc.

This story has been viewed 1888 times.
TOP top