Taishin Financial Charges Lawmaker Chou With Libel, Obstruction

By Chinmei Sung

Aug. 23 (Bloomberg) -- Taishin Financial Holding Co., whose shareholders include billionaire George Soros, has filed civil and criminal charges against legislator Chou Yi for alleging its 2005 bid for Chang Hwa Commercial Bank was illegal.

Complaints of libel and obstruction of credit were filed yesterday with the Taipei District Court, Taishin said in a stock exchange filing after market closed yesterday. The company denies all allegations made by Chou, it said in the statement.

Taishin is seeking a public apology from Chou, the Economic Daily News reported today, citing Lin Keh-Hsiao, president of the Taipei-based financial company.

Chou didn't return calls made to his mobile phone today seeking comment.

Taishin lost 15 percent of its market value and fell to record lows in five days of declines through Aug. 21 amid reports that regulators are investigating possible irregularities in financial mergers, including the takeover of Chang Hwa Commercial.

Taiwan's former President Chen Shui-bian is the subject of a corruption probe as regulators examine takeovers, seeking possible links to Chen and his family.

Taishin, Taiwan's third-worst-performing financial stock this year, rose 4.7 percent to NT$9.79 yesterday in Taipei. UBS AG cut its rating on the stock to ``sell'' from ``neutral'' on political risks and a likely failure of the Chang Hwa deal.

To contact the reporter on this story: Chinmei Sung in Taipei at csung4@bloomberg.net.