Instant-noodle maker Tingyi (Cayman Islands) Holding's long-running talks to sell shares to Campbell Soup of the United States have ended without agreement.
Tingyi's controlling shareholder is now in negotiations to sell a stake in the company to Taiwan's largest food conglomerate, President Enterprises.
The ending of the talks with Campbell, which lasted four months, raised concern over whether Tingyi would be able to redeem on time a US$150 million floating-rate note maturing in November.
Tingyi said yesterday it was in preliminary discussions to sell not more than 35 per cent of the firm to President, which has a market capitalisation of about $2.4 billion.
It did not explain the reasons for the failed talks with Campbell, but a spokesman said any potential co-operation with President would fit its business strategies and culture.
President's businesses include instant noodles, dairy products, frozen foods, bakeries, edible oil and canned pickles. It also operates 7-Eleven chain stores in Taiwan.