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Taiwan duo scrap share plans
TAIPEI, Taiwan (Reuters) -- Two Taiwan computer screen makers, Chi Mei Optoelectronics and Quanta Display, have cancelled global share issue plans, blaming market instability from the U.S. war on Iraq. Chi Mei, the world's fourth-largest panel display maker, said on Monday it had decided to cancel a planned depositary receipts issue to raise T$20 billion ($575 million) as war uncertainties had drained demand for such issues in international markets. The company, Taiwan's second-largest panel display maker, would reapply for the issue when market conditions stabilized, Chi Mei said in a statement to the Taiwan Stock Exchange. Quanta Display, which ranks 10th in the world, said in a similar statement that it would cancel a planned issue of 350 million to 450 million global depository receipts due to market instability following the U.S.-Iraq war. The firm did not expect to make the issue before permission from local securities regulators expired, and would re-file at a more appropriate time, Quanta said in a statement on Friday. On Monday, Quanta shares fell T$0.15, or 1.2 percent, to T$12.30, underperforming a 0.35 percent drop in the benchmark Taiex share index. Chi Mei shares ended flat at T$30.80. Chi Mei said it would conduct a domestic rights issue of 500 million shares at a tentative price of T$21 per share, raising some T$10.5 billion for expansion. Its board also approved a 12 percent stock dividend based on 2002 earnings, it said. In September, Chi Mei said it planned to raise US$830 million through overseas convertible bonds and depositary receipts to equip a new plant. In February, Chi Mei sold US$225 million of convertible notes to meet the firm's financing requirements. Quanta Computer, the world's largest maker of laptop computers in terms of units shipped, owns about 30 percent of Quanta Display, which supplies the screens used in laptops. It had said in previous filings it planned to use the proceeds for the share issue for additional machinery and equipment. Taiwan flat-screen makers had plans to raise around T$170 billion ($5 billion), both at home and abroad, for plants they hope to have up and running by 2003, using the latest technology to compete with industry leaders in Korea. Copyright 2003 Reuters. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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