09.10.2001
UWCCB shares still being snapped up

• Development: Since mid-August, Fubon Group and Lin Yuan Group (both strategic shareholders of UWCCB) have continued to buy UWCCB shares, reportedly increasing holdings to 9% and 6.4%, respectively. UWCCB’s share price has dropped only 0.5%, versus a 6% fall in the banking index, indicating both groups are still aggressively buying.

• Analysis: Both groups will continue to buy, as there is still room to increase holdings. Under the present insurance law, Cathay Life (2805) can also purchase up to 10% of UWCCB. Fubon may gain support from CitiGroup to further increase holdings.

• Primasia View: We believe ownership competition will buffer the stock from downside pressure on the market.