Singapore’s Chartered Semiconductor Manufacturing Ltd (特許) yesterday denied a report that it had received a bid for a majority stake from an Abu Dhabi state-owned company.
Chartered issued the statement after the Business Times said Advanced Technology Investment Company (ATIC) tabled an offer for up to 60 percent of its shares, valuing the chipmaker at S$2.45 billion (US$1.68 billion).
“Chartered Semiconductor Manufacturing Ltd wishes to clarify that it has not received such a bid from ATIC,” the chipmaker said in the statement. “From time to time, Chartered engages various parties in discussions to pursue business opportunities or concerning the strategic direction of the company, with a view to maximizing value for all shareholders.”
“There is no assurance that any definitive or binding agreement will result from these discussions,” the statement said.
The paper, without citing anyone, reported yesterday that ATIC tabled an offer to acquire the entire stake owned by Singapore investment firm Temasek Holdings PTE. Temasek declined to comment on what it called “rumors.”
Speculation of a Middle East bid drove up Chartered shares 7.4 percent to S$2.18 in Singaporean trading on Thursday, the Business Times report said.
Chartered rose 1.4 percent to S$2.21 at the midday break on the city’s stock exchange, taking its gain this year to 85 percent. The Straits Times Index has advanced 32 percent this year.
“It is not Temasek’s practice to comment on market rumors,” Temasek said in an e-mailed statement.
Earlier yesterday, Chartered asked for a temporary halt to trading in its shares and issued the statement to clarify it had not received any bids from ATIC.
The Taipei-based Economic Daily News reported in October that Taiwan Semiconductor Manufacturing Co (台積電) may consider buying Temasek’s stake in Chartered.
Chartered, listed in Singapore and on the NASDAQ in New York, makes custom-built microchips for set-top boxes and video games, as well as MP3 and DVD players.
The company, like the global technology sector, has been badly affected by the global downturn as earnings tumbled in the first quarter of the year.
It reported last month a net loss of US$98.77 million for the three months to March, compared with a profit of US$2.4 million the previous year. Chartered said last month it would probably report a deficit in the current period.
Chartered last month raised US$300 million by selling shares to existing investors. The company has eliminated workers and cut overtime to curb costs.
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