Tue, Sep 20, 2011 - Page 12 News List

Insyde share prices rise 6.3% on Intel speculation

By Kevin Chen  /  Staff Reporter

Share prices for Insyde Software Corp (系微), a leading PC BIOS (basic input/output system) program provider, rose 6.33 percent yesterday on market speculation that Intel Corp would purchase some of its unsecured convertible bonds to become a strategic investor.

The board of the Taipei-based company last week approved a plan to issue as much as NT$300 million (US$10.07 million) in 3.5-year unsecured convertible bonds at a coupon rate of less than 1 percent, according to a stock exchange filing issued on Friday.

Insyde Software said in the filing it would use the bond issuing to secure strategic investors and use the proceeds to strengthen its working capital, as well as develop new products and technologies.

The company’s board did not set the conversion price for the bonds last week or identify potential investors. Instead, in a separate filing, Insyde Software said it was scheduled to hold an extraordinary shareholders meeting on Nov. 10 to set the price and release other details.

Insyde Software shares rose NT$7.5 to close at NT$126 on the Taiwan Stock Exchange yesterday. The Chinese-language United Evening News reported yesterday that Intel could own a 8.24 percent stake in Insyde Software if the global chip giant exchanged the convertible bonds for the Taiwanese company’s shares, without saying where it got the information.

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