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Chunghwa Telecom Directors Alert NYSE to Potential Illegality of Secondary Offering
New York -- Three members of the board of directors of Chunghwa Telecom Co. Ltd., have alerted the chief executive officer of the New York Stock Exchange of the controversy and potential illegality regarding the secondary offering of Chunghwa Telecom stock and the prospective listing of its ADRs on the New York Stock Exchange.
In a letter to NYSE CEO John Thain, Chunghwa Telecom Directors Shih-Peng Tsai, Yueh Hung Lin and Yen Chung Lu outlined the actions they have taken, including a formal objection they made to the Securities and Exchange Commission stating that the offering does not comply with Taiwanese law.
The directors have filed a petition in Taiwan seeking a temporary restraining order to stop the sale; that petition currently is under review.
The directors also informed the NYSE official of the action by officials from Taiwan's legislature, representing opposing parties, who pledged to overrule the secondary offering when the legislature returns to session on Sept. 13.
"Unfortunately, we believe Chunghwa Telecom and its U.S. underwriters (Goldman Sachs, UBS and Morgan Stanley) intend to complete the offering this week before the legal issues can be resolved in Taiwan," they wrote. "We understand that the NYSE has a duty to protect trading and investors from potentially illegal activity, and therefore request that the NYSE take all actions necessary to postpone the listing of the new Chunghwa ADRs until legal certainty is established in Taiwan," they said.
In a letter to NYSE CEO John Thain, Chunghwa Telecom Directors Shih-Peng Tsai, Yueh Hung Lin and Yen Chung Lu outlined the actions they have taken, including a formal objection they made to the Securities and Exchange Commission stating that the offering does not comply with Taiwanese law.
The directors have filed a petition in Taiwan seeking a temporary restraining order to stop the sale; that petition currently is under review.
The directors also informed the NYSE official of the action by officials from Taiwan's legislature, representing opposing parties, who pledged to overrule the secondary offering when the legislature returns to session on Sept. 13.
"Unfortunately, we believe Chunghwa Telecom and its U.S. underwriters (Goldman Sachs, UBS and Morgan Stanley) intend to complete the offering this week before the legal issues can be resolved in Taiwan," they wrote. "We understand that the NYSE has a duty to protect trading and investors from potentially illegal activity, and therefore request that the NYSE take all actions necessary to postpone the listing of the new Chunghwa ADRs until legal certainty is established in Taiwan," they said.