Taiwan’s Chunghwa Back on Auction Block
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Taiwan’s government today will try for the fifth time this year to auction a stake in Chunghwa Telecom Co. to help plug a budget deficit. Investors predict another flop.
The problem: The government wants to sell 13.5% of the island’s biggest phone company at higher than market value.
The government is seeking institutional or strategic investors to buy 1.3 billion shares at a minimum price of $1.84 billion. That’s $1.42 a share, 1.7% more than the average price in the last six months and 1.4% above the closing price on Dec. 13. At the last auction on July 1, no bidders appeared.
The government needs to sell Chunghwa and other state-owned assets to help bridge an expected $8.37-billion budget deficit and refinance record national debt.
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