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Acer seeking to clarify insider trading probe of two employees

2014/03/18 19:38:45

Taipei, March 18 (CNA) Acer Inc. said Tuesday that it is seeking to clarify an investigation into insider trading involving two of its employees after its headquarters in the Xizhi district of New Taipei was searched by prosecutors.

Local media reported that New Taipei prosecutors launched the raids earlier that day as part of an investigation of allegations that a manager responsible for Acer's stock investment, acting on instructions from his superior, sold all the company's shares just before then-Acer Chairman and CEO J.T. Wang was to resign in late November last year.

Acer responded to the Taiwan Stock Exchange that it has provided related information to the authorities in cooperation with the investigation process on alleged insider stock trading by two employees' individual actions.

"Acer has always operated honestly as a law-abiding company and requires its employees to follow the laws and regulations," the company said in the statement.

"Today, the authorities took from the Acer headquarters in Xizhi, Taiwan, related documents and information. Acer is cooperating fully with the investigation and hopes to clarify the matter as soon as possible," it added.

Once the world's second-largest PC maker, Acer reported an after-tax loss of NT$7.63 billion (US$252.6 million), or a loss of NT$2.8 per share, in the fourth quarter of 2013, including an unexpected NT$1.3 billion write-off of raw materials inventory.

That followed a loss of NT$13.12 billion, or NT$4.82 per share, in the third quarter, driven largely by a write-down in the value of intangible assets that led to Wang's resignation and that of former CEO Jim Wong in November.

Acer shares closed down 0.82 percent at NT$18.2 Tuesday in Taipei prior to the media report that Acer's headquarters had been searched.

(By Jeffrey Wu)

●March. 19: Shares of Acer under pressure on insider trading probe
●March. 19: Two detained in Acer insider trading probe