phone call from umc, page-25

Buyers in UMC are probably just arbitageurs. Buy at $1.29, get $1.30 on 18/2/10, guranateed ~9.2% profit (annualised, [1-[$1.29/$1.30]]*12 months). Compares well with cash management rates of 2.7 to 5.6% annual. Thats why the buy price has been creeping up: the time to pay-out is shortening.

On top of that, there is the (increasingly unlikely) possibility of a counter bid.

Like most in this forum, I believe the UMC board has erred in its course of action. Also like most, I want to see the scheme voted down, the board resign, and the company revalued to peer levels. Heres hoping.