Taiwan probes M&A activity at fin holding cos

Taiwan's finance ministry said on Wednesday it was investigating possible impropriety in three acquisitions of state-run financial holding firms by private companies.

The ministry said it was looking into the acquisitions of Chang Hwa Bank 2801.TW by Taishin Financial (2887.TW: Quote, Profile, Research, Stock Buzz) and of Mega Financial (2886.TW: Quote, Profile, Research, Stock Buzz) by Chinatrust (2891.TW: Quote, Profile, Research, Stock Buzz), and another deal involving China Development Financial 2883.TW.

"We are examining if there was any inappropriateness during the process. If there was, we will give pertinent information to the Financial Supervision Commission and prospectors," said deputy minister Chang Sheng-ford.

The ministry also said it was investigating possible impropriety involving Hua Nan Financial's 2880.TW management fight for control of the company.

The financial sub-index rose 0.96 percent, roughly in line with the broader market 's 0.89 percent gain.

But shares of the companies involved were mixed.

Taishin, the island's No.3 financial holding firm, dropped 3.51 percent, after hitting a record low in the prior session. Taishin on Tuesday dismissed rumours of impropriety in its ongoing merger with Chang Hwa. [ID:nTP137123]

Taiwan's top credit card issuer, Chinatrust, rose 1.25 percent. Mega - the No.4 financial holding company - fell 0.52 percent, and Hua Nan rose 0.9 percent. (US$1=T$31.39)