TAIPEI (XFN-ASIA) - Macronix International Co Ltd (2337.TW) termed as speculation a report that it has approached private-equity funds for the possibility of joining forces in a management buyout.
The maker of nonvolatile memory chips said it is not aware of any such discussions.
Macronix also rejected market talk that Japan's Nintendo Co Ltd -- Macronix's key client -- is seeking a stake in the Taiwan firm.
The Commercial Times reported earlier, citing unnamed sources, that Macronix has approached private-equity funds for the possibility of joining forces in a management buyout in order to ensure control of the company at its upcoming board election.
The most promising partner is believed to be Boston-based Bain Capital LLC, which in turn may introduce an investment from Japan's Nintendo Co Ltd, the report said.
Sources told the paper that the Powerchip group is seeking over 50 pct representation of the Macronix board on the back of its 10 pct stake in the latter. The stance is posing a threat to Macronix's current board members who have a combined stake of less than 4 pct, it said.
Bain Capital may usher in investment funds from Nintendo and move on to make a tender offer for Macronix shares, the report added.
At 11.08 am, Macronix was up 0.20 twd at 14.40 while Powerchip was down 0.10 at 20.25.
(1 usd = 33.10 twd)
philip.wang@afxasia.com