The nation's chief financial regulator yesterday told legislators a probe into alleged insider trading by siblings Thomas Wu (
The two Wu brothers are fighting for control of Shinkong Synthetic Fibers Corp (
"We'll launch an investigation if there are any irregularities," Financial Supervisory Commission (FSC) Chairman Kong Jaw-sheng (龔照勝) told the legislature's finance committee.
Kong made the remarks after DPP Legislator Lin Wen-lang (林文郎) accused Thomas Wu of dumping over 90 million shares of Taishin Financial Holding Co (台新金控), owned by the fiber-maker, hours before the Ministry of Economic Affairs ruled last Wednesday that his younger brother Eric Wu should be the lawful chairman of Shinkong Synthetic Fibers.
Thomas Wu then bought back the shares through three subsidiary companies, a move which market insiders believe was aimed at preventing Eric Wu from buying more shares in Taishin Financial in the future, should the ministry's ruling designate him as chairman of Shinkong Synthetic Fibers.
The fiber-maker owned a 5 percent stake in Taishin Financial.
Thomas Wu is currently chairman of Taishin Financial, while his elder brother Eugene Wu (
The DPP's Lin also accused Eric Wu, who is a Taiwan Solidarity Union legislator and chairman of Taiwan Securities Co (
Taiwan Securities bought over 120 million shares of Shinkong Synthetic Fiber last Wednesday, when the ministry ruled that he was the fiber company's lawful chairman.
Boost performance?
It is speculated that Eric Wu bought the fiber company's shares to boost its stock performance and to celebrate the final ruling that he would take over the chairmanship from his elder brother.
Despite the family squabble, shares of Shinkong Synthetic Fibers have continued to climb, rising from NT$6 per share in early August, to NT$9.35 per share yesterday -- an increase of nearly 50 percent.
"As long as the firm's financial portfolio is healthy, the dispute over its leadership shouldn't have too much impact," according to one stock analyst, who refused to be identified.
"On the contrary, the fiber company's shares have performed pretty well, since there may be efforts to boost it," he added.
Although Thomas Wu vowed to dispute the ministry's decision last week, the fiber company's new board met yesterday and agreed that the firm will be temporarily headed by the Wus' mother, Wu Kuei-lan (
Last week, the ministry ruled that the old board, which had elected Thomas Wu as chairman, should have been reshuffled.
As such, no chairman elected by the old board was legitimate since a letter of re-assignment had arrived before the board meeting on Aug. 6.
INVESTMENT: Jun Seki, chief strategy officer for Hon Hai’s EV arm, and his team are currently in talks in France with Renault, Nissan’s 36 percent shareholder Hon Hai Precision Industry Co (鴻海精密), the iPhone maker known as Foxconn Technology Group (富士康科技集團) internationally, is in talks with Nissan Motor Co’s biggest shareholder Renault SA about its willingness to sell its shares in the Japanese automaker, the Central News Agency (CNA) said, citing people it did not identify. Nissan and fellow Japanese automaker, Honda Motor Co, are exploring a merger that would create a rival to Toyota Motor Corp in Japan and better position the combined company to face competitive challenges around the world, people familiar with the matter said on Wednesday. However, one potential spanner in the works is
SEMICONDUCTORS: Samsung and Texas Instruments would receive US$4.75 billion and US$1.6 billion respectively to build one chip factory in Utah and two in Texas Samsung Electronics Co and Texas Instruments Inc completed final agreements to get billions of US dollars of government support for new semiconductor plants in the US, cementing a major piece of US President Joe Biden administration’s CHIPS and Science Act initiative. Under binding agreements unveiled Friday, Samsung would get as much as US$4.75 billion in funding, while Texas Instruments stands to receive US$1.6 billion — money that would help them build facilities in Texas and Utah. The final deals mean the chipmakers can begin collecting the funding when their projects hit certain benchmarks. Though the terms of Texas Instruments’ final agreement is
Call it an antidote to fast fashion: Japanese jeans hand-dyed with natural indigo and weaved on a clackety vintage loom, then sold at a premium to global denim connoisseurs. Unlike their mass-produced cousins, the tough garments crafted at the small Momotaro Jeans factory in southwest Japan are designed to be worn for decades, and come with a lifetime repair warranty. On site, Yoshiharu Okamoto gently dips cotton strings into a tub of deep blue liquid, which stains his hands and nails as he repeats the process. The cotton is imported from Zimbabwe, but the natural indigo they use is harvested in Japan —
Japan ramped up its warnings against currency speculation on Friday after the yen slid to a five-month low following a hint from the central bank chief that he might wait longer than expected before raising interest rates. “The government’s deeply concerned about recent currency moves, including those driven by speculators,” Japanese Minister of Finance Katsunobu Kato said. “We will take appropriate action if there are excessive moves in the currency market.” The yen regained some ground against the dollar after Kato’s remarks, strengthening to as much as ￥156.89 after earlier weakening to ￥157.93. The Japanese currency strengthened a little further after currency
RSS