Infineon to reduce its stake in Qimonda to ‘significantly’ less than 50% by 2009

By Ann Steffora Mutschler, Senior Editor -- Electronic News, 8/6/2007

Neubiberg, Germany-based semiconductor player Infineon Technologies AG today further detailed the divestiture of its interest in Qimonda AG including reduction of its stake in its spin-off to “significantly” less than 50 percent not later than by its annual shareholder meeting 2009.

The company said it will continue with its strategy to reduce its stake through secondary offerings and other capital markets measures with any cash inflow from such sales to be used for selective acquisitions to strengthen Infineon’s business or to repurchase Infineon shares.

Infineon’s plan also plans to take necessary measures at its annual shareholder meeting 2008 to allow distribution of Qimonda shares as a dividend in kind to Infineon shareholders, which would allow such a dividend to be possible after the annual shareholder meeting 2009, the company noted.

Infineon president and CEO Dr. Wolfgang Ziebart said in a statement, “Carving-out and listing our memory business [now Qimonda AG] last year effectively created two focused companies, each with a well-defined strategy and clear prospects.”

“With today’s decision, we are gaining another option to reduce our stake and are increasing the flexibility regarding the speed of the reduction. At the same time we are strengthening both companies and are accommodating the interests of our shareholders,” he added.

Infineon also said today that its supervisory board released Rüdiger A. Günther, CFO and labor director, from his positions, and has asked Peter J. Fischl to assume the positions of interim CFO and interim labor director.

Günther, who the company said was released from his positions due to irreconcilable differences, was appointed a member of the Board in April 2007 and became both CFO and Labor Director in May 2007. He originally succeeded Peter J. Fischl, who held the two positions until his retirement in May 2007.