Taiwan chip packager SPIL urges shareholders to reject rival's offer

Reuters News
Posted: Sep 10, 2015 5:03 AM

TAIPEI (Reuters) - Taiwan chip packaging firm Siliconware Precision Industries Co Ltd (SPIL) urged shareholders on Thursday to reject a bid by larger rival Advanced Semiconductor Engineering Inc (ASE) to buy a stake, saying the at least T$30 billion ($924 million) offer price was too low.

SPIL, the world's third-largest chip packager, said the offer by ASE to buy a 25 percent stake in the open market was purely opportunistic and undervalued the company.

"The offer lacks a reasonable acquisition premium, grants significant leverage to ASE to impact future strategic decisions, and creates significant uncertainty for the Company and its shareholders," SPIL said in a statement.

Executives at ASE could not be reached for comment.

Since ASE announced its intention to buy into the company, SPIL has engaged in a stock swap with iPhone assembler Hon Hai Precision Industry Co Ltd.

The deals come amid a spree of mergers and acquisitions by chip firms as they seek to overcome the technological challenges raised by the Internet of Things, where everyday products are monitored and controlled online.

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Chip packaging firms are also looking to combine expertise to create technologies for smart wearables like Apple Inc's watch, for which ASE is a main supplier.

ASE had previously expressed concern over SPIL's tie-up with Hon Hai.

(Reporting by Michael Gold; Editing by Miral Fahmy)