Founder rises on acquisition talk

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SHARES in China’s No. 2 PC seller Founder Technology rallied 4.06 percent yesterday on market talk that appliance-making giant Haier Group was seeking to buy into the company, analysts said. Founder’s Shanghai-listed shares gained as much as 0.17 yuan to 4.36 yuan (US$0.58), in active trade following a 10 percent surge the previous session. “Founder’s strong performance was caused by the rumor that Haier would buy into the company,” said Zheng Weigang, analyst at Shanghai Securities. The China Securities Journal, citing analysts, said there was talk that Haier wanted to buy 10 percent in Founder for about US$50 million, or 4.12 yuan a share, though executives at both firms have denied that. The newspaper also said Founder’s planned rights issue of 291.13 million shares at 2.66 yuan each, announced Tuesday, might be aimed at deterring Haier Group from buying a stake. Proceeds will be invested in its printed-circuit-board (PCB) business. Officials at Founder were not available for comment. An official at Haier in the eastern port city of Qingdao said she could not provide immediate comment.