No reason for unusual trades: STATS ChipPAC

SEMICONDUCTOR packaging and testing company STATS ChipPAC, in response to a query by Singapore Exchange on the unusual price movements in its shares on Wednesday, said there has been "no material development" on the speculation about a possible bid for the company, and that it was not aware of any information that could explain Wednesday's trading activity.

In its pre-market announcement yesterday, STATS ChipPAC said "certain other parties" have contacted the company to explore a possible acquisition, following its announcement on May 16 that the company had received a non-binding expression of interest from a third party on a possible takeover bid. It added that it was unaware of any information not previously announced in relation to the company and its subsidiaries that could have explained the unusual trading activity on Wednesday.

When contacted, a STATS ChipPAC spokesman said the company does not comment on speculation. On Wednesday, STATS ChipPAC's shares opened half a cent higher at 49.5 cents, then fell to a low of 48 cents around noon, before it started on a continuous upward trend from about 3.30 pm. At the close, its shares had surged as much as 25.5 per cent to 61.5 cents, also the day's high.