red its stake in bigger rival Mega Financial Holding Co. by 3.9 percent as ordered by the regulator. The company won’t say what it plans to do with its remaining 11.7 percent ownership, Chinatrust Chief Strategy Officer Jason Wang said in a phone interview.
Taipei-based Chinatrust began selling the 3.9 percent holding in Mega, the island’s second largest financial services company by market value, on the open market in the first quarter.
The Financial Supervisory Commission (FSC) ordered Chinatrust last July to cut its stake in Mega, from 15.6 percent, within 12 months because it had misused funds to buy the shares.
Chinatrust Financial and its units bought shares of Mega in early 2006, intending to acquire the government-controlled company. Chinatrust will have to unload all its holdings in Mega now that it has failed to proceed with the acquisition plan, FSC Vice Chairwoman Susan Chang said last month.
Shares of Mega have fallen 7.7 percent this year, underperforming a 1.54 percent decline in the index tracking 35 financial stocks on the island. Chinatrust’s shares have fallen 5.7 percent.
