from the ground Up

by Jessica Cheam, The Straits Times, May 30 2009

CHIPMAKER Chartered Semiconductor Manufacturing denied a report yesterday that it has received a $2.45 billion buyout offer from a Middle East firm.
Speculation about the huge deal had driven Chartered shares up 15 cents – or 7.39 per cent – on Thursday to $2.18.
The firm asked for a trading halt yesterday morning to refute buyout reports in the media. But the speculation persisted and propelled the stock a further seven cents to $2.25 once the trading halt was lifted at 11.15am.
The shares hit a high of $2.27 before closing at $2.20.
The Business Times reported yesterday that it understood that Chartered had received a bid from Abu Dhabi’s Advanced Technology Investment Company (ATIC) to buy Temasek Holdings’ stake at between $2.40 and $2.60 a share.
ATIC is a technology investment company set up by the Abu Dhabi government last year.
The Wall Street Journal separately reported yesterday that Temasek Holdings “is considering an offer for its entire stake” in Chartered for about $2.35 billion, at around $2.50 per share.
Chartered referred to The Business Times report in a statement to the Singapore Exchange yesterday morning, and clarified that it “has not received such a bid from ATIC”.
It also said the firm occasionally “engages various parties in discussions to pursue business opportunities or concerning the strategic direction of the company”.
“There is no assurance that any definitive or binding agreement will result from these discussions.”
The firm also advised shareholders to be “cautious” when dealing in their Chartered shares.
Temasek holds 62.33 per cent of Chartered and was the main backer for the firm’s US$300 million (S$436 million) rights issue announced in March.
Temasek declined to comment yesterday on what it called “market rumours”.
Chartered stock has gained about 84 per cent this year, well outpacing the Straits Times Index, which has climbed 32 per cent.
Reports had surfaced last year stating that Taiwan Semiconductor Manufacturing might buy Temasek’s Chartered stake.
Chartered, which retrenched staff recently to curb costs, posted a net loss of US$98.8 million in the quarter ended March 31. It said last month it would probably report more red ink in the current period.