SMIC denies buyout approach

Semiconductor Manufacturing International Corp, China's biggest chipmaker, denied it had been approached by buyout firms, the South China Morning Post reported. Rumors of an approach reported by Bloomberg this week triggered the stock's biggest gain in more than two years Wednesday as shares closed at HK$1.23 (US$0.16), a 12.8% gain from the previous day and the biggest one-day rise since their 2004 trading debut. The Bloomberg report quoted Douglas Hsiung, SMIC's spokesman in Shanghai, who said the company "is being targeted by buyout firms" and had been approached by "potential strategic investors including private equity firms". But Hoo Mei-fung, SMIC's administrative manager in Hong Kong, told the SCMP the Bloomberg story was "not a completed statement. There may be some misunderstanding in the conversation between our colleague and the reporter."