Sat, May 03, 2008 - Page 11 News List

Business Briefs

STAFF WRITER, WITH AGENCIES

ProMOS approves fundraising

ProMOS Technologies Inc (茂德科技), the nation’s third-largest maker of computer memory chips, said the board has approved plans to raise more than NT$30 billion (US$985.5 million) by selling new shares and issuing corporate bonds overseas, strengthening speculation that Japan’s Elpida Memory Inc is set to buy a stake in ProMOS.

ProMOS said the fundraising project was aimed at financing operations and buying new equipment, filings to the Taiwan Stock Exchange on Wednesday showed.

ProMOS plans to issue a maximum of 1 billion preferential shares via private placement and 1.5 billion common shares, in addition to issuing bonds, to raise US$350 million.

The company may obtain around NT$31.1 billion in proceeds based on the stock’s closing price of NT$8.22 yesterday.

The new share offering and bond issuance will be discussed during the shareholder’s meeting scheduled for June 13.

SEF to focus on bankers, China

Taiwanese bankers’ desire to invest in China will be the top priority when work to implement plans for economic cooperation between Taiwan and China begins, the designated chairman of the semi-official Straits Exchange Foundation (SEF) said yesterday.

Chiang Pin-kung (江丙坤) said that issues such as investment guarantees and avoiding double taxation would be handled first if the two sides resume talks.

Chiang said the foundation, an intermediary organization founded in 1990 to deal with cross-strait affairs in the absence of government-to-government ties, would take progressive steps to achieve this goal.

Carnations for Mother’s Day

With Mother’s Day around the corner, a floral company said yesterday it hoped this year’s carnation sales could be maintained at around 1 million flowers so that the price would not fall too low.

Chao Chang-meng (趙昌孟), president of the Kaohsiung International Flower Co (高雄國際花卉公司), made the remarks at a carnation promotion activity in Kaohsiung sponsored by the Council of Agriculture and the Kaohsiung Flower Market.

Chao said people have become more conservative in spending money and he hoped the carnation promotion as well as the concerted efforts of other flower markets nationwide would help boost sales.

He said a big carnation sells for around NT$30, while small ones sell for between NT$10 and NT$20 each. A big imported carnation can fetch a price of around NT$50.

Airlines to hike surcharges

China Airlines Ltd (中華航空) and EVA Airways Corp (長榮航空), the nation’s two largest carriers, will raise surcharges on overseas flights by 20 percent because of higher fuel costs.

Short-haul levies will climb by US$5 per trip to US$30, while those on flights to Europe and the US will rise by US$13 to US$78, the Civil Aeronautics Administration in Taipei said on its Web site yesterday. The charges come into effect from May 16.

Taiwanese carriers are raising surcharges for the second time this year because of surging fuel costs.

The price of jet kerosene, most Asian carriers’ biggest expense, has jumped 68 percent in Singapore trading in the past year.

NT dollar edges down

The New Taiwan dollar declined slightly against the US currency on the Taipei Foreign Exchange yesterday, shedding NT$0.006 to close at NT$30.455.

A total of US$803 million changed hands during the day’s trading.

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