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China: Probe launched into already-approved chip maker merger for alleged collusion

By  |  May 6, 2013
China: Probe launched into already-approved chip maker merger for alleged collusion

A case has been launched into possible insider trading concerning a recent $3.8 billion buyout of a Taiwan-based chip design company, according to reports. Prosecutors announced the investigation into the matter to determine the validity of accusations that four higher-ups from MediaTek and MStar Semiconductor purchased MStar shares just before the company was acquired by MediaTek. Reports say that soon after the announcement of the deal last June, shares for MStar jumped more than 10 percent. Chinese federal officials have yet to approve of the deal, which has been granted permission by antitrust regulators in South Korea as well as Taiwan. The rival companies manufacture chips used within televisions; together, they control 70 percent of the global market.

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