ASE Fails in SPIL Bid

The acquisition of Siliconware Precision Industries (SPIL) by Advanced Semiconductor Engineering (ASE) has not been approved, following a failure to gain antitrust approval.

Taiwan’s Fair Trade Commission neither accepted nor denied the application, which expired on the 17th March. ASE will return all shares to participating investors, but has said that it will not give up on its aim to acquire 100% of SPIL.

A new plan by ASE is to establish an industrial holding company, which would hold 100% equity interests in ASE and SPIL. The companies would retain their individual legal identities under such a move.

It will be one year before ASE can proceed with a new tender offer, under Taiwan’s Securities and Exchange Act. However, if the FTC approves the acquisition then the Financial Supervisory Committee has said that it will consider an exemption from this rule.