Hon Hai, or Foxconn, is the world's largest contract electronics maker. (Photo : Reuters)
Advanced Semiconductor Engineering (ASE), regarded as the largest integrated circuit packaging and testing services provider in the world, has pursued legal measures as it eyes to block a deal between Siliconware Precision Industries and manufacturing giant Hon Hai, better known as Foxconn.
Silicon has scheduled a special shareholders meeting on Oct. 15, which will serve as an avenue to let the world's largest contract electronics maker overtake ASE as its biggest shareholder.
On Oct. 2, ASE has filed an injunction before a Taichung court to stop the meeting from being held. Analysts see this move as a means to block a swap deal between Silicon and Hon Hai.
The upcoming meeting aims to get hold of approval from the shareholders of Siliconware, an IC packaging and testing firm, to let Hon Hai gain a 21.24-percent stake in exchange for Siliconware getting a 2.2-percent stake in Hon Hai.
The deal will dilute ASE's stake to 19 percent, making it the firm's second largest shareholder.
ASE has become the largest Siliconware shareholder on Oct. 1 after it acquired a 25-percent share. The said date of shares delivery prevents ASE from participating in the upcoming meeting as the last shareholder registration date for the event was Sept. 16.
ASE claims that its non-inclusion in the meeting is unfair, citing that the firm was not allowed to vote on the deal despite being Siliconware's biggest shareholder.
ASE is also in talks with other shareholders, urging them to vote against the stock swap deal.
Siliconware is expected to respond five days after the company receives the court document.
