Prosecutors Search Offices at Acer's Smartphone Subsidiary

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Taiwanese investigators searched the offices at Acer's new smartphone subsidiary to collect evidence of insider stock trading by a former executive at the company.

Investigators from the Taipei District Prosecutor's office on Friday entered buildings owned by E-Ten Information Systems, a smartphone maker Acer bought last year, Acer said in a statement to the Taiwan Stock Exchange filed over the weekend.

Acer is cooperating with authorities in the matter and said the investigation will have no impact on its business.

The Taipei District Prosecutor's office is looking for evidence of alleged insider stock trading against a former vice chairman of E-Ten, Lo Wen-jen, and the head of Wistron's legal department, Michael C.M. Wu, an official said. Wistron, the electronics contract manufacturer, was spun off from Acer several years ago.

Neither Lo nor Wu could immediately be contacted to comment on this report.

Acer bought E-Ten last year in an all-stock deal valued at NT$9 billion (US$274.1 million).

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