■ TAIEX edges up on optimism
Shares ended marginally higher yesterday led by optimism about the second quarter for flat-panel makers, analysts said. The TAIEX rose 14.47 points, or 0.2 percent, to 5,993.89. The value of trade dropped to NT$43.6 billion (US$1.38 billion) from Monday's NT$51.21 billion. Panel stocks closed higher on expectations the sector will stage a turnaround beginning in the second quarter, analysts said. Financial shares remained under pressure, because of the slow progress of merger and acquisition talks involving some companies in the sector, analysts said. Investors were also disappointed with the first-quarter earnings of some financial groups.
■ SinoPac gets urge to merge
SinoPac Financial Holdings Co (建華金控), the nation's 10th-biggest lender, said it is seeking merger proposals from rivals Taishin Financial Holding Co (台新金控) and International Bank of Taipei (台北商銀) in the next two weeks. "I have sent an official letter to Taishin and International Bank of Taipei today asking both to submit merger proposals by April 26," Richard Hong (洪敏弘), SinoPac's chairman said at a press briefing in Taipei today. "The proposals will be discussed by the new board which is elected at our May 10 shareholder meeting." Taishin Financial, Taiwan's second-largest credit-card issuer, received SinoPac's letter, said Taishin spokeswoman Carol Lai (賴昭吟) yesterday. "We won't submit a merger proposal until SinoPac's major shareholders reach consensus on its merger strategy," Lai said. Still, Hong's remarks yesterday "haven't been discussed by the company's board, and he hasn't notified the majority of board members," Paul Lo (盧正昕), SinoPac's chief executive officer, said in a faxed statement.
■ Koo calls meeting
China Development Financial Holding Corp (中華開發金控) president Angelo Koo (辜仲瑩) called for another board meeting to approve the takeover of two securities firms after the plan was rejected last month, a Chinese-language newspaper reported. Koo said he will resign if the cost-revenue synergy fails to emerge after the takeover, the newspaper reported citing Koo. Koo's comments came after China Development postponed acquisitions of two securities brokerages on March 24 after one of its board members rejected the takeover plan.
■ AIG seeking loan
American International Group Inc, the world's largest insurer, is seeking a NT$10 billion (US$317 million) loan for its credit card business in Taiwan to refinance debt at lower rates. AIG's Taipei-based unit received proposals to arrange the credit from four different groups of banks including BNP Paribas SA, HSBC Holdings Plc and Standard Chartered Plc, said bankers involved in the transaction. Banks, which get fees for arranging loans, are bidding for the deal amid fewer lending opportunities to Taiwanese borrowers this year. Taiwanese companies signed US$1.5 billion of syndicated loans so far this year, down from US$4.5 billion in the same period last year, Bloomberg data show.
■ Linfair to sell shares
Linfair Engineering & Trading Ltd (福茂國際), a Taiwanese audio and video engineering services provider, plans to hold an initial share sale in Hong Kong next month to raise as much as HK$100 million (US$13 million), the Standard said, citing unidentified people. The company's current projects include work for Hong Kong Disneyland, according to the Hong Kong-based, English-language newspaper.
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