Chartered Denies Bid From Abu Dhabi’s ATIC
Chartered Semiconductor Manufacturing Ltd. (Singapore) denied a report in a Singapore business newspaper that it had received a bid from the same Abu Dhabi investment arm that is the majority investor in GlobalFoundries Inc.
David Lammers, News Editor -- Semiconductor International, 5/29/2009
Chartered Semiconductor Manufacturing Ltd. (Singapore) denied a report in a Singapore business newspaper that it had received a bid from the same Abu Dhabi investment arm that is the majority investor in GlobalFoundries Inc. (Sunnyvale, Calif.). However, the company's statement hinted that it is in talks with potential investors, and the Wall Street Journal reported that sources in Singapore confirmed that Chartered is talking with the Abu Dhabi investment arm.
Chartered issued a statement Friday, a day when trading in its shares was halted for several hours following a report in the Business Times, which reported that Chartered had received a bid from the Advanced Technology Investment Co. (ATIC) to buy Temasek Holdings’s ~60% stake in Chartered for ~$1.7B.
After the brief trading halt, Chartered issued a statement saying that it had not received such a bid from ATIC. “From time to time, Chartered engages various parties in discussions to pursue business opportunities or concerning the strategic direction of the company, with a view to maximizing value for all shareholders. There is no assurance that any definitive or binding agreement will result from these discussions. Shareholders of Chartered are therefore advised to exercise caution when dealing in their shares in Chartered.”
ATIC invested $8.4B in GlobalFoundries, allowing Advanced Micro Devices Inc. (AMD, Sunnyvale) to spin out its manufacturing resources and reduce its debt load. Both Chartered and GlobalFoundries participate in the IBM-led Fishkill, N.Y.-based semiconductor R&D alliance, including a high-performance process based on silicon-on-insulator (SOI) technology. Prior to the formation of GlobalFoundries, AMD relied on Chartered for SOI-based foundry services for its microprocessors.
If ATIP were to take control of Chartered and combine it with GlobalFoundries, the resulting entity would have fabs in Dresden, Germany in Europe, in Singapore, and in the United States after Fab 2 is constructted in Malta, N.Y.
Fabs in the Middle East
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