Wednesday, July 13, 2005

Unions Seek to Block Chunghwa Telecom's Privatization

The Communications Workers of America and the AFL-CIO are joining with the Taiwanese Chunghwa Telecom Workers Union in calling on the Securities & Exchange Commission and state regulators to withhold approval of an offering of shares of Chunghwa Telecom, the incumbent telecom carrier in Taiwan.

Chunghwa Telecom, currently a majority government-owned company, is seeking to offer American Depositary Shares and has retained Goldman Sachs as its lead investment bank.

The Taiwanese labor union is challenging Chunghwa Telecom's planned privatization. Taiwan's Legislative Yuan has also passed a resolution that bars Chunghwa from moving forward with the proposed share offerings.

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