Venture soars on Solectron takeover talk

SINGAPORE, July 10 (Reuters) - Shares of Venture Manufacturing Ltd surged to nearly a five-week high on Tuesday, buoyed by market talk that the electronics contract manufacturer may be acquired by Solectron Corp (SLR).

At midday, Venture shares were up 4.20 percent or 50 cents to S$12.40, off an earlier high of S$12.70 on volume of 14.94 million shares. The stock has performed almost in line with the broader Straits Times Index (STI) over the last six months.

"The rumours are that Solectron, after filing with the SEC (Securities Exchange and Commission) overnight to raise US$3 billion, is planning to take over Venture -- that's why the stock is so active this morning," said an institutional dealer with a local brokerage.

The world's largest electronics contract manufacturing services provider said on Monday it had filed a shelf registration statement with the SEC to offer up to $3 billion of securities.

Any planned offerings are intended to provide the company flexibility to raise funds subject to market conditions and the company's capital needs, Solectron said.

When contacted by Reuters, a Venture spokeswoman said the company could not respond immediately to the speculation. Solectron officials also could not be reached immediately for comment.