Participants in Chunghwa Telecom’s on-off American depositary receipt (ADR) issue are playing a game of bluff and double bluff as they amass support for a dignified climbdown on the deal’s pricing stalemate.
The Taiwanese company’s international issue will happen, observers believe – the trick will be in bringing it at a price that will sell while enabling the Taiwan government to save face.
The ADRs, which are central to the government’s privatization plans and Chunghwa’s independence ambitions, were put on hold in January amid disagreements on pricing between the government and underwriters Goldman Sachs, Merrill Lynch and UBS Warburg.
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