The alleged involvement of former President Chen Shui-bian in massive overseas money laundering drove down the share prices of some major financial stocks by 7%, the daily maximum limit, yesterday (Aug. 18), due to the rumor alleging that Chen received huge bribes from them during the second financial reform.
The most noticeable case is Taishin Financial Holding, whose share price closed at NT$10.05 yesterday, barely higher than the par value of NT$10, a record low, overshadowing the company`s plan to raise fresh fund via cash capital increment by issuing 450 million new shares in December.
To cope with the crisis, Taishin runs advertisements on all major local newspapers today, categorically denying involvement in any irregular activities and vowing to take legal moves against those who spread rumors against the company, so as to uphold the interests of its shareholders and its affiliate Chang Hwa Commercial Bank.
Lin Keh Hsiao, Taishin president, denied yesterday giving Chen NT$2.7 billion to facilitate the takeover of Chang Hwa Bank in 2005, in refuting the statement of Shih Min-teh, former chairman of Democratic Progress Party that "a domestic enterprise gave Chen NT$2.7 billion."
Lin noted that Taishin obtained 400 million shares of Chang Hwa in 2005 at NT$26.12 per share, totaling NT$$36.5 billion, NT$11.4 billion higher than the floor price and NT$7 billion higher than the second highest bid tendered by Taemasek of Singapore.
The participation of Taishin has helped vitalize Chang Hwa`s operation, including write-off of NT$70 billion bad debt, increase of return on equity (ROE), and increase in the latter`s share price, according to Lin.
Despite its huge spending, Taishin has yet to complete the merger with Chang Hwa, which, plus the impact of the twin-card debt storm, has driven down its share price from the level of NT$27.65 on July 22, 2005, when it won the bidding for Chang Hwa shares.
(by Philip Liu)
Source: CENS
The most noticeable case is Taishin Financial Holding, whose share price closed at NT$10.05 yesterday, barely higher than the par value of NT$10, a record low, overshadowing the company`s plan to raise fresh fund via cash capital increment by issuing 450 million new shares in December.
To cope with the crisis, Taishin runs advertisements on all major local newspapers today, categorically denying involvement in any irregular activities and vowing to take legal moves against those who spread rumors against the company, so as to uphold the interests of its shareholders and its affiliate Chang Hwa Commercial Bank.
Lin Keh Hsiao, Taishin president, denied yesterday giving Chen NT$2.7 billion to facilitate the takeover of Chang Hwa Bank in 2005, in refuting the statement of Shih Min-teh, former chairman of Democratic Progress Party that "a domestic enterprise gave Chen NT$2.7 billion."
Lin noted that Taishin obtained 400 million shares of Chang Hwa in 2005 at NT$26.12 per share, totaling NT$$36.5 billion, NT$11.4 billion higher than the floor price and NT$7 billion higher than the second highest bid tendered by Taemasek of Singapore.
The participation of Taishin has helped vitalize Chang Hwa`s operation, including write-off of NT$70 billion bad debt, increase of return on equity (ROE), and increase in the latter`s share price, according to Lin.
Despite its huge spending, Taishin has yet to complete the merger with Chang Hwa, which, plus the impact of the twin-card debt storm, has driven down its share price from the level of NT$27.65 on July 22, 2005, when it won the bidding for Chang Hwa shares.
(by Philip Liu)
Source: CENS
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