Shearman & Sterling represented ST Assembly Test Services Ltd. (STATS), a Singapore public company, in its agreement with California-based ChipPAC, Inc. to merge in a $1.6 billion stock-for-stock transaction.  Under the terms of the agreement, ChipPAC shareholders will receive 0.87 STATS American Depositary Shares for each share of ChipPAC common stock.  Both companies test and package semiconductor chips, and their merger will create one of the world's leading semiconductor assembly and test companies.  The new company will be based in Singapore and have factories there as well as in Taiwan, China and South Korea.