corporate rules, page-2

Xabi

There is no firm deadline approaching. However:

- it is generally preferable from a corporate perspective not to have been suspended for over 5 days - as this can complicate the process for any placements in the next 12 months (although ASIC relief on this can be sought). But in UMC's case this may not be of big concern.

- But still UMC management will be under general mounting pressure from shareholders to get the shares back and trading as soon as possible. Shareholders have bought listed shares and where a company is still solvent (as UMC is) we should not have to endure shares not being tradable for long periods. Hence, management will be under pressure to make a decision (I expect by the end of the week) as to whether the negotiations are likely to be concluded shortly of whether they are going to drag on.

If the negotiations are going to drag on then management should seek the suspension to be listed (after considering what is in shareholders "best interests" - which will then leave the question as to what they must disclose in the announcement of the lifting of suspension.

Whilst there is a carve out in the ASX listing rules for the disclosure of incomplete confidential negotiations - ie these needn't be disclosed until a definite agreement is reached - there is an overriding obligation to ensure there is not a "false" market in their shares. Where there is a specific rumour about a corporate action, the company will be obliged to address this in some form before in the announcement lifting the suspension so that all investors are equally informed, ie they will have to provide some reasonable update on what is going on - which in practise can vary from "vague" to "specific" information depending on the circumstances.

So, whatever happens, we should expect an update before the end of the week, either:
1)announcing terms of a proposal (and lifting of suspension);
2) announcing that negotiations ongoing - eg. been approached by a party (which might be named) - but unable yet to agree terms - might spell out broad parameters of deal (and the lifting of suspension);
3) announcing that confidential negootiations are ongoing and that management expects to conclude negotiations before the end of next week (say) (and shares remain suspended for time being).

Sometimes, depending on who the suitor is, the suitor might decide to go public with a proposal themselves - eg stating that they have made a certain proposal to management and this was rejected - in order to try and get shareholder support to influence management - or simply make a hostile proposal.

I am not a lawyer - but think this is the basic position.