CTB releases merger ratios
CTB Financial Holding Co (交銀金控), which is combining with International Commercial Bank of China (中國商銀) to form Taiwan's biggest publicly traded bank by assets, said it will pay one of its own shares for every 0.878 International Commercial share.
The state-controlled owner of Chiao Tung Bank (交通銀行) also said it is paying one of its own shares for every 1.13 Chung Kuo Insurance Co (中國產險) shares, another previously announced acquisition.
Following the merger, the combined entity will have NT$1.67 trillion of assets and operate 146 outlets in Taiwan and some 20 abroad, CTB Financial said in a statement yesterday.
Mosel Vitelic says it can pay
Mosel Vitelic Inc (茂矽) said it will have enough cash to pay three bonds maturing next year without selling a stake in unit ProMos Technologies Inc (茂德科技).
Mosel has more than NT$6 billion (US$172.5 million) in cash, Chairman Hu Hung-chiu told reporters in Taipei. The company has NT$5.5 billion of bonds coming due in 2003.
"Cash flow this year won't be a problem," Hu said, denying a Chinese-language newspaper report that Mosel will sell its stake in memory-chip maker ProMos, a venture with Infineon Technologies AG. "These reports are wrong."
Mosel reiterated it may sell part of its 47 percent stake in chip-packager ChipMos Technologies Inc (南茂科技) and sell new shares to raise about NT$4 billion. The company earlier said it may also borrow from banks as part of a plan to raise NT$2.5 billion.
Asia Pacific good for cheap jets
Korea, Taiwan and Japan are the markets in the Asia Pacific region where low-cost airlines should take advantage of increased air travel demand, according to a report by the Center of Asia-Pacific Aviation.
High urban concentrations, increased incomes, improving access to the Internet and openness of national economies make those three countries attractive for starting single-service airlines offering flights of as long as four hours, Peter Harbison, managing director of the aviation consultant, said in a report titled "Low Cost Airlines."
So far, only Australia, New Zealand, Malaysia, the Philippines and Japan have discount airlines in the region.
SinoPac seeks merger prospects
SinoPac Holdings Co (建華金控), the Taiwan financial company that's most popular with foreign institutional investors, said it's in talks with China Development Financial Holding Corp (中華開發金控) and four other potential merger partners.
SinoPac, about a third owned by foreign investors, wants to increase its size in its home market to meet some regulatory requirements in mainland China, where it's keen to develop underwriting and investment businesses, said Kevin Peng, senior executive and spokesman for SinoPac.
"We must quickly expand our size because of the China market; the sooner we get in there, the better," said Peng.
SinoPac may appoint an adviser to help in its evaluation of merger prospects. A substantive announcement may take place as early as March or April, before its annual shareholders' meeting.
NT dollar down slightly
The New Taiwan dollar yesterday fell against its US counterpart, declining NT$0.048 to close at NT$34.820 on the Taipei foreign exchange market. The turnover was US$470.5 million, down from last Friday's US$550 million. The local currency, which opened at NT$34.802, traded between NT$34.777 and NT$34.869 during the session.
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