Pegatron Corp., a manufacturing arm of personal computer vendor AsusTek Computer Inc., said Monday it was still investigating accusations that an Apple manager coached its unit in China on how to bid for contracts. A U.S. federal grand jury indicted Paul Devine, an Apple global supply manager, for allegedly taking at least US$1 million in kickbacks from six Apple suppliers in Asia. According to the indictment document released last week, China-based Kaedar Electronics Co., which is wholly owned by Pegatron, was among six Asian firms that received confidential information from Devine to help it negotiate favorable terms in supply contracts with Apple between 2005 and 2008. The others accused include Cresyn Co. Ltd. in South Korea and Jin Li Mould Manufacturing Pte. Ltd in Singapore. Pegatron spokesman Lin Chiu-tan said his company was still checking on the accusations and pointed out that Pegatron did not own Kaedar until 2008. He said Pegatron needed time to better understand the allegations. Kaedar is a computer component manufacturer and also makes casings for iPods. The Wall Street Journal had previously reported Pegatron was working on iPhones based on the code division multiple access (CDMA) mobile standard for Apple. When asked whether Pegatron's business ties with Apple could be affected by the kickback scandal, Lin said he did not think so. Pegatron shares fell when the stock market opened after the scandal surfaced, with institutional investors dumping the stock on fears that orders from Apple would be cut, analysts said. Pegatron closed down 4.26 percent at NT$38.20 on the main board Monday. Pegatron was spun off by AsusTek in the first half of this year as AsusTek planned to focus on building up its own brand as a computer vendor and outsource production work to Pegatron and other OEM suppliers. 