Shares of Semiconductor Manufacturing rise on talks of sale
May 14th, 2008 | by Manufacturing Business |Shares of Semiconductor Manufacturing rise on talks of sale.
Negotiations to sell a significant stake to an undisclosed strategic investor are at an advanced stage, the chip maker said in a statement late Monday. Its shares surged a record 16.5 percent to 53 Hong Kong cents Tuesday.
Semiconductor Manufacturing”s factories in China make it a target for global companies looking to win a bigger share of a chip market that may triple over the five years ending in 2010.
Its shares have fallen 35 percent this year in Hong Kong, compared with a 19 percent decline in the city”s benchmark Hang Seng Index.
‘The strategic investor may be one of Semiconductor Manufacturing”s customers that wants access to their production capacity and would be able to bring in orders, which is a model that”s been common practice in the chip industry,’ said Rick Hsu, an analyst at Nomura Holdings in Taipei, who rates Semiconductor Manufacturing”s shares ‘neutral.’
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