Hon Hai Buys 17% of Q-Run Technology for
$27 Mln, Paper Says
Bloomberg News
July 12, 1999, 1:14 a.m. PT
Taipei, July 12 (Bloomberg) -- Hon Hai Precision Industry
Co., one of the largest component suppliers to Compaq Computer
Corp., bought a 17 percent stake in monitor maker Q-Run
Technology Co. for NT$875 million ($27 million) to help Hon Hai
assemble personal computers for Compaq, the United Evening News
reported, quoting unnamed officials. Hon Hai paid NT$35 per share
for the stake, ending months of market speculation that it would
buy part of Q-Run. The purchase may give a boost to Q-Run, which
lost a record NT$1.08 billion last year, the report said.
Taiwan's high-tech industry is going through a series of
consolidations as companies in less attractive market niches team
up with stronger rivals. Last week, the Lite-On Group said it
will buy 25 percent of money-losing GVC Corp. for between NT$2
billion and NT$3 billion in the coming year.
(United Evening News 7/12/99, p.18)
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