I agree. Why would the Chinese steelmaker agree to pay $1.35 if they thought UMC was worth less than that?
We are seeing a massive arbitrage in the market here. How long will it last?
Some have speculated in previous postings that a large investor is moving out, whilst the Chinese partner is moving in.
Clearly the directors would know who the large seller is (because the registry can provide a daily report). The directors have chosen *not* to broker a deal between the large seller and a potential buyer, instead forcing the seller to get a worse price for their shares. Sour grapes here?
Joel
UMC Price at posting:
99.5¢ Sentiment: LT Buy Disclosure: Held