Bloomberg News

Taiwan Mobile Offers $1.63 Billion for Taiwan Network

March 01, 2007

Taiwan Mobile Co. (3045), the island's second-largest mobile-phone operator by users, offered as much as NT$53.6 billion ($1.63 billion) for shares it doesn't own in Taiwan Fixed Network Ltd. to expand into multimedia businesses.

Taiwan Mobile is making a general offer of NT$8.3 for each Taiwan Fixed Network share, the company said in a statement to the Taiwan Stock Exchange. The offer price represents an 11 percent premium over Taiwan Fixed Network closing price of NT$7.50 today.

``We currently own a 9.95 percent stake in Taiwan Fixed Network,'' Rosie Yu, vice president of Taiwan Mobile, said in a phone interview. ``We aim to acquire at least 41 percent of Taiwan Fixed Network shares, making us the biggest shareholder in the company.''

Taiwan Mobile's offer will ``fall through'' if the company fails to acquire at least a 41 percent stake in Taiwan Fixed Network by April 11, Yu said.

Taiwan Mobile forecast its sales will rise about 19 percent and its earnings before interest, taxes, description and amortization will climb about 10 percent if the company acquires 41 percent or more of Taiwan Fixed Network's shares, said Josephine Juan, a deputy spokesman at Taiwan Mobile.

To contact the reporter on this story: Theresa Tang in Taipei at

To contact the editor responsible for this story: Tom Kohn at

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