STATS ChipPAC shares take a hard knock

SHARES of STATS ChipPAC were dealt a heavy blow on Tuesday following announcements that quashed market hopes that the chip-testing and assembly player could be close to an acquisition deal.

The stock, which was among the day's top losers in percentage terms, closed at 62 Singapore cents apiece, down 7.5 cents or about 11 per cent. It was also the third most actively traded with 62.4 million units changing hands.

The counter fell more than 10 per cent in opening trade and traded for the rest of the day between 60 and 64 Singapore cents.

The sharp price fall came a day after a potential Chinese bidder for the Singapore company said there was a low likelihood of a deal within the next three months.

STATS ChipPAC had highlighted that talks with Jiangsu Changjiang Electronics Technology Co (JCET) - which is looking into acquiring the company - were still at a preliminary stage.

Last week, it said it was in talks with JCET and another Chinese firm, Tianshui Huatian Technology Co, about a possible deal. But trading was halted on Monday and STATS ChipPAC announced that Tianshui Huatian Technology had decided to terminate its approach.