Can someone explain to me, is this good or bad for UMC?
Monday November 26, 11:28 AM
Taiwan state fund to sell United Microelectronics ADRs
sg.news.yahoo.com
TAIPEI (Reuters) - Taiwan's state stock stabilisation fund plans to sell American Depository Receipt (ADR) shares of United Microelectronics Corp (UMC) to partially recoup past stock market losses, the finance ministry said on Monday.
A senior ministry official, who asked for anonymity, confirmed the state fund's plan to sell the ADRs, but declined to give details.
An official at the Securities and Futures Commission said it had previously approved the state fund to sell ADRs, but the fund did not follow through because of a sluggish U.S. stock market.
"The stabilisation fund had to reapply to extend the previous authorisation period," said the official, who did not elaborate.
On Saturday, the Chinese-language Economic Daily News said the stabilisation fund planned to sell 270 million ADRs of UMC.
The state fund decided to sell the UMC <2303> shares six months ago, and expected to net around T$14 billion (US$406 million), the paper said.
By 0201 GMT on Monday, Taiwan-listed shares of UMC, the world's No. 2 contract chipmaker, gained T$0.70, or 1.85 percent, to T$38.50, while the main TAIEX index rose 1.75 percent. |
