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Danger?
Any reason to offer?...
danger counter
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| SINGAPORE (XFN-ASIA) - Citigroup considers chip tester and packager United Test
and Assembly Center (UTAC) and electronics contract manufacturer Venture Corp to be strong candidates to be taken over because of their strong cash flows and widening margins. "UTAC has M&A potential. Its healthy operating cash flow and a balance sheet that has room for leverage underpin our view," Citigroup analyst Low Horng Han said in a note to clients. "Although UTAC's scale is smaller than tier-one names such as ASE or STATS ChipPAC, it has grown to become a sizeable player," Low said. Low noted that UTAC is now ranked number five globally in terms of last year's revenue, climbing from number eight a few years ago as result of two well integrated acquisitions and organic growth. He said Flextronics' acquisition of Solectron was likely to trigger further consolidation in the electronics contract manufacturing sector and that Venture was a likely takeover target. "We recognize that the industry's earnings prospects are not going to improve significantly, but Venture's above-industry average margins and strong positive free cash flow make the company a good target, in our view," Low said. At 2.00 pm, UTAC was up 0.055 sgd or 5.53 pct at 1.05, with 53.32 mln shares traded. Venture was down 0.30 sgd or 1.91 pct at 15.40, with 391,000 shares traded. (1 usd = 1.53 sgd) singapore@xfn.com MMMM |
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when it says strong M&A potential could means that UTAC can be acquired or acquire somebody ?
It rose after a Citigroup report saying that the microchip testing firm has strong M&A appeal fuelled takeover speculation among investors.
"We reiterate our belief that UTAC has M&A potential. Its healthy operating cashflow and a balance sheet that has room for leverage underpin our view," Citigroup analyst Horng Han Low said in a client note.
"UTAC has grown to become a sizeable player -- ranked 5th globally in terms of revenue in '06... thanks to 2 well integrated acquisitions and organic growth."
Can someone share as to the rise today? What gives?
Looks like they called sell so they can buy more!
It happens!
Utac bull! Still vested with CPF:). I remember at about 90c, analysts were calling a sell on this stock.
my guess is people are pinning hopes on UTAC since Ellipsiz M&A failed.
So funny that UTAC can fly today when Statschippac cannot. ST has to cut its headcount. Semicon didnt look good. Can someone share?
Highly unlikely that it will break out of .95 though I personally hope it does too. BB seems to be keeping it under control.
Vested.
Utac if break .95 is a triangle breakout. Keep watch. Objective is 1.08.
Utac is moving up again.. watch out...
Surprise, at T+4 today after the recent run up to 0.975. I don't see many force selling instead the price gone up. Can I take this as a good sign or are the trader rolling over? Any more up side? I hope still vested.
Big mistake made by Mediacorp 11pm Chinese News on 16 May 07 nite will mislead the retail traders, luckily rectify just before end of news....
She mentioned that T.Holding is taking over UTAC, actually is STATC.
Hope the retail traders here are cleared, no news on T.H. to takeover UTAC.....Trade with care.....
Utac says 'no concrete' offer for firm
We get requests for talks all the time from bankers,' Chong Chow Pin, director of investor relations at Utac, told Reuters.
'There's really nothing concrete that's on the table,' said Mr Chong, speaking by phone from New York.
Utac, which has a stock market value of about $1.46 billion (US$960 million), is one of the Singapore technology firms seen as a potential takeover target following a bid earlier this year for Stats ChipPac , the world's fourth-largest microchip tester and packager.
Singapore state investor Temasek Holdings bid as much as US$1.6 billion for the 64.4 per cent of Stats ChipPac that it did not already own.
'There's always a follow-on from the market after one deal,' Mr Chong said. -- REUTERS
At the end of the day, fundamentals counts!
that will be the best...but somehow i just think it is the bbs pushing price up.either way. hope it crosses a dollar!
perfect guess will be temasek buy UTAC, halt the baby and buy the baby at 1.10 like Stats.. perfect scenario, right?
Utac moving like crazy, what the news take over?