By: Jalen Chung and Elizabeth Hsu
Taipei, Oct. 4 (CNA) Legal action by Advanced Semiconductor Engineering Inc. (ASE) to try to stop a provisional meeting of shareholders of Siliconware Precision Industries Co. slated for Oct. 15 will be a disaster for Taiwan’s stock market if the action is successful, John Hsuan (宣明智), an independent board member of Siliconware, warned Sunday.
ASE filed an injunction with a court in Taichung on Friday to stop the Oct. 15 meeting from being held, and analysts said the injunction is expected to block a stock swap deal between Siliconware, an IC packaging and testing firm, and the world’s largest contract electronics maker, Hon Hai Precision Industry Co.
“If the ASE injunction request is granted, it could be a disaster for Taiwan’s stock market” because it will confuse people with regard to the definition of shareholders’ ownership, Hsuan said, warning that the confusion could compromise all shareholder meetings of listed and over-the-counter companies in the future. [FULL STORY]