Stats ChipPAC shares tumble after takeover offer falls short of expectations

Singapore - Shares of local semiconductor firm Stats ChipPAC fell on Friday a day after a Chinese firm made a takeover offer.

Its shares were trading 9.5 cents or 16.4 per cent lower at 48.5 cents as at 11.04am.

Some 39.2 million shares exchanged hands in the morning, making it the second most active stock behind JES International with 55.7 million shares traded.

Trading of STATS ChipPAC resumed on Friday after a halt was in place since Monday pending an announcement.

But investors are bailing out of the company after what's seen as a disappointing bid of US$780 million by China's Jiangsu Changjiang Electronics Technology (JCET).

At the offer price, it amounted to about 45.2 cents per share, a discount of 22 per cent to its last closing price of 58 cents last Friday.

The offer does not include Stats ChipPAC's units in Taiwan.

Stats ChipPAC has been in play with market speculation it is an acquisition target.

It said in August that JCET and another Chinese firm, Tianshui Huatian Technology Co, had approached it about a buyout, prompting investors to drive its shares to a three-year high of 75 cents in late August.

But share prices fell after it said Tianshui Huatian ended talks of a takeover.