14 DAY TRIAL // German chip and memory maker Infineon Technologies announced that it will lower its shares in Qimonda to less than 50 percent over the next two years. Qimonda started in 2006 as a division of Infineon Technologies that specialized in making different kinds of chips for computers and the parent company still owns the vast majority of Qimonda shares, around 86 percent.
According to a company press release, Infineon Technologies plans to complete its retreat from Qimonda no later that the Annual Shareholder Meeting for the year 2009, when its total share in Qimonda should be "significantly below 50 per cent". Infineon will then continue to lower its shares in Qimonda by "econdary offerings and other capital markets measures", while the cash flows received from these operations will be used for selective acquisitions or to repurchase Infineon shares.
"Carving-out and listing our memory business 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," said Dr. Wolfgang Ziebart, President and Chief Executive Officer of Infineon Technologies AG.
Last month, Infineon Technologies registered a loss of 197 million Euro because of its position of primary investor in Qimonda that registered even more losses, totaling 218 million Euro. After that unpleasant event, the parent company, Infineon Technologies, terminated the contract of the Qimonda chief executive officer Ruediger Guenther that replaced Peter Fischl in May after Fischl's official retirement. Peter Fischl came back to lead Qimonda on an interim basis until a more permanent solution could be found. According to Infineon Technologies the management of the company was not too happy with the previous Qimonda CEO and "decided to release Guenther from his positions due to irreconcilable differences and immediately initiated the contract termination."