BEIJING, Jan. 8 (InfoChina) – Semiconductor Manufacturing International Corporation (NYSE: SMI and HKSE: 0981.HK) confirmed that the company had contacted with some investors including private fund companies, but there was no concrete plan yet, Shanghai Securities News reported.
SMIC made the announcement after market hearsay about it being a possible acquisition target, which sent its stock prices to skyrocket recently. The company once announced on January 3 that it had made no decision about any resulting transaction involving the company or its subsidiaries.
The report indicated that some investment funds such as Morgan Stanley and Goldman Sachs had regular contact with SMIC, but it declined to disclose the potential possibility of purchasing stock rights.
Given the acquisition hearsay, Goldman Sachs pointed out on January 7 that SMIC was unlikely to give up its controlling power although SMIC’s stock was far less attractive than that of Taiwan Semiconductor Manufacturing Company Limited (TSMC). Moreover, Bank of China International also doubted that SMIC would sell its equities to private funds.
Meanwhile, Shanghai Securities News reported that SMIC intended to sell some wafer equipments at its joint venture in Chengdu, capital of China’s southwest Sichuan province. If completed, the deal will bring about 100 million US dollars of special gains to the company and thus contribute to SMIC’s financial performance in 4Q’06 and 1Q’07. (Edited by Yang Liu,
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China Stock News 
