02.22.2001
Accton seeks technology gain from merger

• Accton (2345 'Zhi Bang') will file an application to merge with Eumitcom (unlisted), in which it is a major shareholder. The merger was originally planned to go ahead last year as a three-way tie-up with Tai Kong (unlisted), but failed due to Tai Kong's withdrawal.

• Accton will benefit from the deal in terms of cost savings and capitalizing on Eumitcom's advanced wireless technology and distribution network. The merger will also help Accton expand into the Wireless Local Area Network (WLAN) market.

• Due to price pressure, more international network equipment manufacturers like Cisco (US) are expected to release more outsourcing contracts to Accton, putting its 2001 revenue target of NT$20b within reach.

BennyLo@Primasia.com +886-[0]2-2547-8869