The China Post staff
Chien Kuo-wei, who is in charge of the Taiwan operations of JPMorgan Chase, said yesterday he knew nothing about suspected insider trading at Fu Sheng Industrial Co. before it was taken over by Oaktree Capital Management LLC. JPMorgan Chase served as a consultant in the acquisition deal. “I have no idea about this,” Chien told the United Daily Evening News in United States, where he is on a business trip.
Chien, son of former Control Yuan president Frederick Chien, made the remarks after the United Daily Evening News reported local prosecutors are requesting Chien’s return to the island to help with the investigation, citing unidentified sources. “I have not received any request from prosecutors. But if they want me to return to Taiwan, I will do so and will cooperate with them as a responsible citizen of the Republic of China,” Chien said. Prosecutors Wednesday searched Fu Sheng Industrial Co.’s headquarters as part of a probe into alleged insider trading before the world’s biggest maker of golf club heads announced a takeover by Oaktree Capital Management LLC.
“Related individuals” who knew about the plan bought shares of Taipei-based Fu Sheng before the May 9 buyout announcement and likely made an illegal profit of NT$40.64 million, Taiwan’s Supreme Prosecutors’ office said in a statement Wednesday. The stock rose 11.7 percent from May 7 to May 10, according to the statement, which said three locations were searched and 23 people questioned. Fu Sheng spokesman C.S. Hsiao said the company “does everything legally and we also took measures to guard the deal’s secrecy.”
Fu Sheng said on May 9 that U.S. buyout firm Oaktree Capital planned to pay NT$37.50 a share to acquire all its shares. The deal is pending regulatory approval.