23 September 2008

Hon Hai Denies Interest in Pegatron

Reports out of Taiwan suggest Hon Hai is interested in purchasing ASUSTek spin-off Pegatron. Digitimes wrote:

Foxconn Electronics (Hon Hai Precision Industry) is reportedly considering acquiring the operations of Pegatron Technology through a stock exchange, according to a Chinese-language Economic Daily News (EDN) report.

Asustek acknowledged that releasing Pegatron stock is one of the strategies adopted after the spin-off of its OEM arm, while Foxconn declined to comment regarding the speculation, according to the paper.

Several first-tier OEMs have been in negotiations with Asustek seeking to cooperate or acquire Pegatron since last year. Some market watchers believe Foxconn and Pegatron would be an excellent complement for each other, added the paper.

However, currently Hon Hai, the Foxconn parent company have denied the rumors.

Digitimes: Foxconn considering Pegatron acquisition, says paper

NY Times: Taiwanese electronics giants deny reported tie-up

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