Banciao prosecutors yesterday raided Inventec Appliances Corp (英華達), a local handset maker that also produces iPod music players for Apple Inc, looking for evidence to support charges of alleged insider trading.
The raid began at 1pm, when prosecutors and a group of special agents from the Ministry of Justice's Investigation Bureau arrived at the company's headquarters in Wugu (五股), Taipei County. When the raid was completed, prosecutors and special agents escorted 22 members of staff back to their offices for further questioning, which was still ongoing as of press time.
"We have reliable information that alleges this company's high-ranking managers manipulated the company's stock price," said Banciao District Prosecutors' Office Spokesman Huang Yu-yuan (黃玉垣).
In response, Inventec Appliances Corp said in a statement "the company's operations will not be affected by the search. The company will cooperate with the investigation and is awaiting the results."
Inventec is the latest in a string of listed companies under investigation for insider trading, following Veutron Corp (
Inventec shares fell 1.11 percent to NT$80 on the Taiwan Stock Exchange yesterday, underperforming the benchmark TAIEX index's 0.11-percent loss.
A large proportion, about 60 percent to 65 percent, or NT$95.65 billion (US$2.89 billion), of Inventec's total revenues for last year were derived from making the popular iPod digital music player for Apple, while its handset business accounted for just 10 percent.
Revenues in the first quarter plunged 43 percent to NT$10.65 billion from NT$24.96 billion a year earlier. As of last month, the electronics company said it had 13,817 employees, down roughly 14 percent from its 16,000-strong workforce last year.
Inventec is 45 percent owned by local computer maker Inventec Corp (英業達).
Helen Chen (陳佩君), who tracks the mobile phone industry for Polaris Securities Co (寶來證券), was not shocked by the insider trading allegations.
"The stock price of Inventec was like a rollercoaster last year. It is not easy to judge whether the movement of the stock price was linked to the alleged insider trading," Chen said.
Inventec shares rallied to a record high of NT$236.5 on Feb. 3 last year, but tumbled 62 percent from their peak to a closing price of NT$91 on the last trading day of last year.
Chen retained her "neutral" rating for Inventec on lukewarm momentum, while foreign investment research houses Merrill Lynch and Goldman Sachs downgraded the stock to "sell" last month.
Inventec said net income fell 31.33 percent to NT$2.06 billion, or NT$4.72 per share, last year, compared to NT$3 billion, or NT$7.28 a share, earned in the previous year.
Additional reporting by Jimmy Chuang
Also see story:
BenQ senior executives charged
The US government has signed defense cooperation agreements with Japan and the Philippines to boost the deterrence capabilities of countries in the first island chain, a report by the National Security Bureau (NSB) showed. The main countries on the first island chain include the two nations and Taiwan. The bureau is to present the report at a meeting of the legislature’s Foreign Affairs and National Defense Committee tomorrow. The US military has deployed Typhon missile systems to Japan’s Yamaguchi Prefecture and Zambales province in the Philippines during their joint military exercises. It has also installed NMESIS anti-ship systems in Japan’s Okinawa
‘WIN-WIN’: The Philippines, and central and eastern European countries are important potential drone cooperation partners, Minister of Foreign Affairs Lin Chia-lung said Minister of Foreign Affairs Lin Chia-lung (林佳龍) in an interview published yesterday confirmed that there are joint ventures between Taiwan and Poland in the drone industry. Lin made the remark in an exclusive interview with the Chinese-language Liberty Times (the Taipei Times’ sister paper). The government-backed Taiwan Excellence Drone International Business Opportunities Alliance and the Polish Chamber of Unmanned Systems on Wednesday last week signed a memorandum of understanding in Poland to develop a “non-China” supply chain for drones and work together on key technologies. Asked if Taiwan prioritized Poland among central and eastern European countries in drone collaboration, Lin
ON ALERT: Taiwan’s partners would issue warnings if China attempted to use Interpol to target Taiwanese, and the global body has mechanisms to prevent it, an official said China has stationed two to four people specializing in Taiwan affairs at its embassies in several democratic countries to monitor and harass Taiwanese, actions that the host nations would not tolerate, National Security Bureau (NSB) Director-General Tsai Ming-yen (蔡明彥) said yesterday. Tsai made the comments at a meeting of the legislature’s Foreign Affairs and National Defense Committee, which asked him and Minister of National Defense Wellington Koo (顧立雄) to report on potential conflicts in the Taiwan Strait and military preparedness. Democratic Progressive Party (DPP) Legislator Michelle Lin (林楚茵) expressed concern that Beijing has posted personnel from China’s Taiwan Affairs Office to its
BACK TO WORK? Prosecutors said they are considering filing an appeal, while the Hsinchu City Government said it has applied for Ann Kao’s reinstatement as mayor The High Court yesterday found suspended Hsinchu mayor Ann Kao (高虹安) not guilty of embezzling assistant fees, reducing her sentence to six months in prison commutable to a fine from seven years and four months. The verdict acquitted Kao of the corruption charge, but found her guilty of causing a public official to commit document forgery. The High Prosecutors’ Office said it is reviewing the ruling and considering whether to file an appeal. The Taipei District Court in July last year sentenced Kao to seven years and four months in prison, along with a four-year deprivation of civil rights, for contravening the Anti-Corruption
RSS