Speculation swirls around troubled Abit

Motherboard maker Abit’s stock has taken a tumble after possible accounting problems caused the Taiwan Stock Exchange to institute a temporary halt to the trading of the stock recently. DigiTimes has a story on the latest developments. I’ll quote it at length, since it contains lots of good info:

Share prices of Abit opened limit-down but ended limit-up at NT$2.25 on the TAIEX (Taiwan Stock Exchange), Wednesday, after dropping for 20 consecutive sessions on concerns of alleged fraud in its transaction records.

A total of 100.8 million Abit shares, or a 12.07% stake of the company’s outstanding shares, were transacted on the TAIEX Wednesday, indicating that there were investors picking up Abit shares, with market sources pinpointing Foxconn as the prospective buyer.

Meanwhile, sources at Abit stated that the company is now in talks for possible business cooperation with a number of IT companies, including those that do not produce motherboards.

DigiTimes says that Foxconn denies buying up Abit shares, adding to the intrigue.

We tried to get a handle on this situation at CES, and it was tough. The folks from Abit told us everything was fine and that this would all blow over “in two weeks,” leaving us to puzzle over why there was such time-definite window for the issue to be resolved. Abit also mentioned to us that it had to make some special arrangements with suppliers in order to continue receiving components. Still, Abit’s reps were unequivocal in their confidence that the matter would be resolved.

Other industry insiders we spoke with at the show noted that Abit’s stock price had dropped dramatically, making the company vulnerable to a possible takeover. Abit is widely acknowledged to have excellent marketing and R&D, and some observers expressed confidence that Abit’s brand and products would survive a change of corporate ownership. One industry source painted Abit’s prospects in dire terms, giving the company three months before it was out of business.

Today’s news seems to strengthen the case for Abit facing some kind of change in ownership. The big question, from our perspective, is whether Abit’s excellent products and support will continue to flow from the reconstituted company. Right now, it’s anyone’s guess.

Comments closed
    • Proesterchen
    • 16 years ago

    If this means less Fatality-style motherboards with 30 LEDs and half a dozen mini-fans, I’m all for Abit dying.

    And that I’m saying with a trusty IC7-G in my puter.

    • random gerbil
    • 16 years ago

    I think if something major or dramatic was goin to happen to Abit, L’Inq would be all over it like white on rice…they tend to be good at sniffing out juicy rumors, true or false. Havent heard much from them about it other than the temporary halt issued by the TAIEX. Makes me think this will all just blow over.

      • Decelerate
      • 16 years ago

      I’m not so sure about that, their problems seem serious enough. Getting swallowed by another company or just dying is my prediction.

    • atidriverssuck
    • 16 years ago

    good god, just don’t stop the flow of Rubycon & Nichicon capacitors 🙂

    • Ragnar Dan
    • 16 years ago

    “One industry source…”

    And would that source be a competitor, per chance? Not the most responsible anonymous quote I’ve ever read here, by a long shot.

      • Damage
      • 16 years ago

      Not exactly a direct competitor. I can’t say who, obviously, but I did weigh whether or not to include the info, and it seemed worth mentioning.

        • Ragnar Dan
        • 16 years ago

        The only thing I can come up with as not a “direct” competitor, but might know a bit about Abit’s finances would be VIA or someone like that.

        Rumors have some value for passing time entertainingly, and when they’re from people we have some knowledge as being worth listening to, but this one just seems a little like someone hoping rather than knowing.

        Of course, I’m a user of Abit products and like them, so I have a propensity to hope for things to work out for them. So my initial response was probably a bit harsh. We shall see.

    • Corrado
    • 16 years ago

    This really sucks. Abit was one of the only board manufacturers I actually trust. I’ve had Asus boards go up in flames (literally), flakey MSI, Gigabytes that don’t work proplerly, FoxConn boards that don’t like to boot… Abit was the only board i felt comfortable buying for my own systems knowing it would work as intended out of the box.

      • jss21382
      • 16 years ago

      try out DFI, used them for several years with no problems

        • Dposcorp
        • 16 years ago

        jss21382, you are correct. It seem in the past few years that DFI has moved into one of the top 5 spots of mobo makers.

        If I remember correctly, they hired a bunch of top notch engineers from Abit, Soyo, and other companies, which the lead to the Lan Party series that has become so successful. After trying them out, I was very pleased, and that has lead me to buy two more DFI boards in the last few weeks.

          • GodsMadClown
          • 16 years ago

          I still have a DFI socket 7 box. Running strong and stable w/ a Mobile K6-3+ @600Mhz.

            • just brew it!
            • 16 years ago

            Heh… another “old school” K6-III+ user! 😀

            I just retired one of mine… the other one (a 450@500) is still chugging along in my web server 24×7. Last reboot was 357 days ago! The mobile K6-III+ was a damn fine little chip for its time… decent performance and very cool running. The one I just retired was even passively cooled… slapped a generic Socket A HSF (minus the fan) on it, and it ran fine that way for years.

          • jss21382
          • 16 years ago

          They had great boards before then…but they were just standard brown pcb type things, more of an oem product at that time

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