InfoVision Optoelectronics Said to Woo AU Optronics
AUO | Quote | Chart | News | PowerRating -- InfoVision Optoelectronics (Kunshan) Co., Ltd., one of the TFT-LCD (thin-film transistor-liquid crystal display) panel makers in China, is likely to seek a partnership with its Taiwan-based peer AU Optronics Corp. (NYSE: AUO | Quote | Chart | News | PowerRating) after a well-planned backdoor listing aborted.
An investigation team led by Liang Baohua, secretary of Jiangsu Provincial Committee of the Communist Party of China (CPC), is scheduled to pay a visit to the AU Optronics headquarters in Taiwan on November 11, disclosed sources familiar with the matter on November 10, noting that the CPC Jiangsu Committee secretary-headed team will meet with K.Y. Lee, chairman for the Taiwan company, during the short visit starting from November 9.
Such a visit came several days after an InfoVision Optoelectronics executive ended a business tour to Taiwan. Li Shaowu (transliterated), financial director for the Kunshan-based company, together with some chiefs at a bank, called at the AU Optronics headquarters during the Taiwan tour last Friday, according to an employee at InfoVision Optoelectronics.
The reported dropby of the group of Jiangsu visitors was later confirmed by a spokesperson for AU Optronics Suzhou, who declined to say whether the government official-headed visit would be a followup of the InfoVision Optoelectronics executive tour to AU Optronics.
Nevertheless, the much-hyped Taiwan tour of a government official-led investigation team prompts market speculation about a possible cooperation between InfoVision Optoelectronics and AU Optronics.
A market observer said later on the day that Mr. Liang's call at AU Optronics highlighted the provincial government's effort to promote a partnership between the two firms, as the Mainland China is trying to court for investment from Taiwanese LCD panel makers.
On September 12, InfoVision Optoelectronics announced that the third phase of its 8.5G LCD panel production line broke earth in Kunshan Optoelectronics Industrial Park, a project that is expected to cost as much as USD 3.3 billion in total.
The Kunshan TFT-LCD panel maker plans to lure a strategic investor for the newly-launched project, apart from loans from a bank consortium and fresh capital from two InfoVision Optoelectronics majority shareholders, disclosed Gu Jianyu, deputy director for the Administration Committee of Kunshan Economic and Technological Development Zone, at an earlier interview.
Notably, LCD panel makers in Taiwan are considering setting foot in the mainland, where their rivals in Japan and South Korea are busy setting up plants with aggressive investment plans.
(USD 1 = CNY 6.83)
Source: www.nbd.com.cn (November 11, 2009)
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