Siliconware Precision Industries Responds To Acquisition Offer, Shares Jump 3%

Advanced Semiconductor Engineering (ADR) (NYSE: ASX) proposed on December 14 to acquire all the shares of Siliconware Precision Industries(ADR) (NASDAQ: SPIL) on the Taiwan stock exchange for a 21 percent premium.

Siliconware's Board of Directors released a letter on Monday, noting that it will evaluate Advanced Semiconductor Engineering's proposal if Advanced Semiconductor Engineering immediately ceases its hostile tender offer and begin negotiations that are based on "mutually agreed foundations."

Siliconware also noted that the acquisition offer of NT$55 for its Taiwan-listed shares is "comparably low."

Finally, Siliconware requested answers to 3 questions: 1) how will an acquisition protect the rights and interests of its employees, 2) how will the acquisition protect shareholders' equity interests, and 3) how will the acquisition comply with various global anti-trust laws.

Shares of Siliconware were trading higher by more than 3 percent at $8.20 following the Board of Directors' letter.