TAIPEI, Sept 10 (Reuters) - Taiwan chip packaging firm
Siliconware Precision Industries Co Ltd (SPIL) 2325.TW urged
shareholders on Thursday to reject a bid by larger rival
Advanced Semiconductor Engineering Inc (ASE) 2311.TW to buy a
stake, saying the at least T$30 billion ($924 million) offer
price was too low.
SPIL, the world's third-largest chip packager, said the
offer by ASE to buy a 25 percent stake in the open market was
purely opportunistic and undervalued the company.
"The offer lacks a reasonable acquisition premium, grants
significant leverage to ASE to impact future strategic
decisions, and creates significant uncertainty for the Company
and its shareholders," SPIL said in a statement.
Executives at ASE could not be reached for comment.
Since ASE announced its intention to buy into the company,
SPIL has engaged in a stock swap with iPhone assembler Hon Hai
Precision Industry Co Ltd 2317.TW .
The deals come amid a spree of mergers and acquisitions by
chip firms as they seek to overcome the technological challenges
raised by the Internet of Things, where everyday products are
monitored and controlled online.
Chip packaging firms are also looking to combine expertise
to create technologies for smart wearables like Apple Inc's
AAPL.O watch, for which ASE is a main supplier.
ASE had previously expressed concern over SPIL's tie-up with
Hon Hai.
($1 = 32.4650 Taiwan dollars)