“Foxconn Technology Group failed in its bid to take a stake in a Taiwanese chip company after a bruising public battle entangled two of Apple Inc.’s chief suppliers,” Tim Culpan reports for Bloomberg.
“Siliconware Precision Industries Co. shareholders Thursday rejected two resolutions that would have paved the way for billionaire Terry Gou’s empire to become its biggest shareholder. Rival Advanced Semiconductor Engineering Inc. had campaigned against the move after failing to get a court to block the deal,” Culpan reports. “ASE, already a supplier of components used in Apple’s smartphones and watches, last month won a tender for Siliconware shares that gave it a 25 percent stake. Siliconware then sought to outflank ASE by turning to Gou, betting that teaming with the assembler of iPads and iPhones would help it win orders from Apple. Under the plan, Siliconware would have received shares in Foxconn’s Hon Hai Precision Industry Company. ASE had said the planned sale of new shares in Siliconware, or SPIL, at a discount would dilute the stock’s value too much.”
“Thursday’s extraordinary general meeting failed to pass the proposals, which required two-thirds of votes cast, SPIL spokesman Byron Chiang said by phone,” Culpan reports. “The plan to boost shares garnered 46.6 percent support, while 32 percent rejected it and 21 percent abstained. The proposal to widen the band on asset transaction also failed by a similar margin.”
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MacDailyNews Take: Terry Gou generally doesn’t give up. He’s likely to come at it from a different angle if he still sees potential.