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UMC reportedly seeks delisting from Taiwan exchange

Posted: 30 Dec 2005 ?? ?Print Version ?Bookmark and Share

Keywords:United Microelectronics? umc? Taiwan Stock Exchange?

The chairman of United Microelectronics Corp. reportedly said Wednesday (Dec. 29) he is considering delisting the contract chipmaker from the Taiwan Stock Exchange after being penalized for delaying disclosures.

According to an Associated Press report, UMC chairman Robert Tsao stated in open letter to shareholders published in major daily newspapers the Financial Supervisory Commission's decision on Dec. 15 to fine the company $1,500 was "unreasonable."

"Why is a simple, self-disciplined and law-abiding company like us becoming the target of the stock exchange and the Financial Supervisory Commission? It deserves serious consideration whether we should delist from Taiwan and find a more suitable stock market," Tsao was quoted as saying.

On Dec. 13, UMC that it would restate its earnings under U.S. Generally Accepted Accounting Principles for 2002, 2003 and 2004. The company said it was doing this because there had been errors in its filings with the U.S. Securities and Exchange Commission.

The Taiwan Stock Exchange imposed the fine on UMC because its disclosure on the SEC earnings restatement wasn't posted on the Taiwan Stock Exchange's website until Dec. 14, after the local bourse began trading for the session.

Taiwan's regulators require companies to disclose information which might influence the stock market before the beginning of the trading session following the event in question.

The company's American Depositary Receipts are traded on the New York Stock Exchange.

But Tsao reportedly said in Wednesday's letter the company hadn't considered issuing the earnings restatement on the TSE Web site because its English announcement was made to global investors, including those in Taiwan.

"We hope the critics and securities regulators will reflect on whether the criticisms and the penalty are reasonable," Tsao was quoted as saying.

- Spencer Chin
EE Times

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