Lin Cheng-hung, chairman and president of Chunghwa Picture Tubes (CPT), was quoted recently as saying CPT was in talks with Quanta Display for a possible merger between the two companies, though he later denied making such a statement.
According to a recent Chinese-language Commercial Times report, Lin said that CPT is “working” with Barry Lam, chairman of Quanta Display and parent company Quanta Computer, to merge the two panel makers. However, during a recent company event, Lin denied that he made such a claim but admitted that CPT may negotiate with unspecified companies in the future.
However, the Commercial Times report has attracted the attention of Quanta Computer and the Financial Supervisory Commission (FSC) of Taiwan's Executive Yuan.
Tim Li, a vice president and CFO of Quanta Computer, indicated that both Barry Lam and executives at Quanta Computer were shocked to hear about such news and consider Lin’s speech “against market practice”. Nevertheless, he admitted that CPT did have initial talks with Quanta Display but Quanta has not yet fully evaluated the situation. Li also indicated that any considerations of a merger would not be affected by Lin revealing Quanta’s name publicly.
FSC, on the other hand, said it will ask CPT to clarify whether it is using the merger issue to boost its stock prices or facilitate insider trading.
WS Lin, president of Tatung, the parent company of CPT, was quoted by the Commercial Times as saying that whether CPT will merge with other companies will be finalized within a month.
On September 7, CPT denied rumors that it will merge with Quanta Display or Innolux Display, a Taiwan-based panel maker whose parent company is Hon Hai Group, according to a filing with the Taiwan Stock Exchange (TSE).
At that time, Quanta Display also denied the rumor.
Article translated by Carrie Yu and edited by Michael McManus
