PHILPS throwing TSMC shares is still the 1 billion largest shareholder

PHILPS has announced that if the implementation of the overallotment option, the previously announced sale of TSMC share part of the plan will be able to raise $1 billion of funds.

The sale of 528 million 10 thousand shares will enable PHILPS to raise up to $715 million ($885 million), PHILPS will be in 2005 in the third quarter of $420 million ($520 million) tax exempt income. Philips the sale of shares will be completed in August 10th, it is the price per American Depositary Shares ($8.6 per American Depositary Shares equivalent to 5 shares of TSMC shares). This will allow PHILPS's stake in TSMC fell from 18.7% to 16.6%.

The underwriter can also choose in 30 days by American Depositary Shares in the form to purchase up to 15% shares, if the overallotment option is fully implemented in TSMC, PHILPS stake in electricity will further decline to 16.3%. PHILPS will gain another 105 million euros (about $130 million) in the third quarter of 2005, it will benefit from a profit of 60 million euros (about $75 million) of tax-free income.

PHILPS has agreed not to sell more TSMC shares in Taiwan or the international market until 2006, so it will remain the largest shareholder of TSMC in the future.