Taiwan chip packaging firm Siliconware Precision Industries Co Ltd (SPIL) urged shareholders on Thursday to reject a bid by larger rival Advanced Semiconductor Engineering Inc (ASE) to buy a stake, saying the at least T$30 billion ($924 million) offer price was too low.

SPIL, the world’s third-largest chip packager, said the offer by ASE to buy a 25 percent stake in the open market was purely opportunistic and undervalued the company.

“The offer lacks a reasonable acquisition premium, grants significant leverage to ASE to impact future strategic decisions, and creates significant uncertainty for the Company and its shareholders,” SPIL said in a statement.

Executives at ASE could not be reached for comment.

Since ASE announced its intention to buy into the company, SPIL has engaged in a stock swap with iPhone assembler Hon Hai Precision Industry Co Ltd.

The deals come amid a spree of mergers and acquisitions by chip firms as they seek to overcome the technological challenges raised by the Internet of Things, where everyday products are monitored and controlled online.

Chip packaging firms are also looking to combine expertise to create technologies for smart wearables like Apple Inc’s watch, for which ASE is a main supplier.

ASE had previously expressed concern over SPIL’s tie-up with Hon Hai.

(Reporting by Michael Gold; Editing by Miral Fahmy)

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