Shareholders at Siliconware Precision Industries (SPIL) did not support a proposed share-swap deal with Foxconn Electronics. SPIL had intended to increase authorised shares from 3.6 billion units to 5 billion, and increase the limit on investments in a single security from 20% of the companu’s net worth to 60%. Both proposals were rejected.
Advanced Semiconductor Engineering, the largest (25%) shareholder, was not able to exercise its voting right at the meeting on the 15th October. However, it had expressed its opposition to the move. Shortly after the meeting, SPIL filed a civil lawsuit in Taiwan against ASE, requesting that the court confirm that ASE does not have the right to register as a shareholder of the company. SPIL says that ASE has acted ‘with a competitor’s mindset’.
SPIL chairman Bough Lin has said that the company will now look for other ways to carry out the deal.
