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Opaque buyout process seen hurting local firms

Opaque buyout process seen hurting local firms

A U.S. business group claimed yesterday that Taiwan's lengthy delays and lack of formal process for leveraged buyout deals hurts Taiwan chip companies.
In a press release posted on its Web site yesterday, the U.S.-Taiwan Business Council, which is dedicated to fostering trade and business relations between the United States and Taiwan, said Taiwan's government should set up a thorough, transparent, and straightforward process for mergers and acquisitions in Taiwan's semiconductor industry.
The lack of a permanent and timely process for reviewing mergers and acquisition activity in the chip sector adds costs that may inhibit foreign investment from even exploring Taiwan's market, according to the press release.
Contributing factor
In addition, the council said, it leads to delays that may ultimately cause deals to collapse - a contributing factor in the recently scuppered plan by U.S.-based Carlyle Group to buy out Kaohsiung, Taiwan-based chip packager Advanced Semiconductor Engineering.
Carlyle offered to buy ASE for NT$39 per share in November, 2006, but called off the bid early this month over the failure to clench a deal with the ASE.
Rupert Hammond-Chambers, president of the U.S.-Taiwan Business Council said that increased merger and acquisition activity in the semiconductor industry would have a positive impact on the overall value of Taiwan's economy as well as increasing the capital available to companies.


Updated : 2021-07-27 19:20 GMT+08:00