BenQ shares hit 10-year low as CFO detained in investigation

Shares in Taiwan’s BenQ dropped 7% to a 10-year low on Wednesday as the company CFO is detained by prosecutors in the country investigating suspected insider trading at the company.

Eric Yu, senior vice president and chief financial officer, was detained by prosecutors who wish to determine if he or any other company executives were involved in insider trading before the company declared the insolvency of its German unit last September.

BenQ Mobile was purchased from Siemens in late 2005, but after the company failed to turn the unit around it was dissolved in September of 2006. The Financial Supervisory Commission (FSC), Taiwan’s top financial regulator, wishes to know if the company might have sold shares before the company announced July - September losses of $371 million in October.

Seven other people have been detained as part of the investigation, and BenQ shares ended down at their 7% daily limit, standing at 39.5 cents.