Local prosecutors and Investigation Bureau agents yesterday raided the headquarters of Acer Inc (宏碁) in New Taipei City’s Sijhih District (汐止) and 13 other locations on allegations of insider trading.
New Taipei City prosecutors launched the raids after the local stock market closed. They searched the locations after a media report that a manager responsible for stock investment for Acer, acting on instructions from a superior, sold all the company’s shares just before then-chairman and CEO Wang Jeng-tang (王振堂) resigned in late November last year because of the company’s falling sales and widening losses.
The world’s fourth-largest PC maker saw its revenue for the whole of last year contract by 16.2 percent to NT$360.19 billion (US$11.8 billion), while reporting a record loss of NT$20.58 billion, the third consecutive unprofitable year after losing NT$2.91 billion in 2012 and NT$6.6 billion in 2011.
Acer confirmed the incident later yesterday. The company said in a statement that investigators took away some documents from its headquarters.
The company dismissed a rumor that 10 high-ranking company officials had been summoned for questioning, but said it was cooperating with the investigation process on alleged insider trading as a result of the individual actions of two employees.
“Acer has always operated honestly as a law-abiding company and requires its employees to follow the laws and regulations,” the company said in the statement.
Acer hopes to “clarify the matter as soon as possible,” it added.
Acer shares fell 0.82 percent to NT$18.2 yesterday in Taipei trading and have declined 31.19 percent over the past 12 months, Taiwan Stock Exchange data showed.