Government sale of China Steel shares draws few buyers
Steelorbis previously reported that shares of state-run Taiwanese Steel Mill would be sold at an auction that would take place three days.
Steelorbis is reported that, in the first day of the auction (August 5, 2003) the government, which is the biggest shareholder of the company sold 5.9 million shares of the mill for an average price of NTD24.02 per share. The first day's transaction constitutes 1% of the expected total amount of shares to be sold. The remaining 564 million shares are expected to be sold at today's and tomorrow's auction. Through selling its shares, the government aims to reduce its shares in the company from 40% to 34%.
According to the executives the first day's transaction is quite weak due to a decrease in the share price.
China Steel shares dropped to NTD0.5, which is the ultimate bottom price level for the auctioned shares.