Image source: Siliconware Precision Industries.
What: Shares of Siliconware Precision Industries (NASDAQ: SPIL) have jumped today, up by 10% as of 3:20 p.m. ET, after regulators suspended review of Advanced Semiconductor Engineering's attempted hostile takeover.
So what: Taiwan's Fair Trade Commission has suspended its regulatory review of the deal since ASE's tender offer has expired. The offer expired a week ago on March 17. This is a big victory for Siliconware Precision, as the company has been fighting ASE's takeover attempts for months.
Now what: ASE had acquired a 25% stake in SPIL last year through an unsolicited tender offer, and launched another tender offer in December in an effort to acquire another 25% stake. Taiwan's FTC was unable to make a final decision by the time the offer expired. ASE now says it hopes to partner with SPIL, yet will still pursue its goal of eventually acquiring 100% of SPIL shares. However, local law prohibits ASE from initiating a fresh round of tender offers for one year.
