Yesterday we posted a report titled "Foxconn may pull off a Coup Tomorrow by Acquiring Apple Supplier Silicon Precision Industries." The stars were lining up and on paper it looked as if Foxconn would be able to pull off a coup and acquire Silicon Precision Industries (SPIL). It's what the SPIL executives wanted. But today's vote by shareholders shot down the proposal and Foxconn's plans went down in flames.
According to a Taiwan report, "Siliconware Precision Industries (SPIL) has failed to gain the required support from shareholders for two resolutions that were necessary for SPIL to carry out a proposed share-swap deal with Foxconn Electronics (Hon Hai Precision Industry).
SPIL proposed to increase authorized shares from 3.6 billion units to five billion, and increase the limit on the investments in a single security from 20% of the company's net worth to 60%. However, both proposed amendments were rejected at SPIL's provisional shareholders meeting on October 15."
Right to the bitter end, "SPIL chairman Bough Lin reiterated he believed SPIL's vertical alliance with Foxconn would generate better outcomes than a horizontal alliance between it and Advanced Semiconductor Engineering (ASE)," but to no avail.
SPIL spokesman Byron Chiang stated that "Thursday's extraordinary general meeting failed to pass the proposals, which required two-thirds of votes cast. Considering that ASE owned 25% of the shares, they didn't need to win many to kill the deal. It was a long shot that Foxconn would be able to pull it off and would have been a coup if they did.