Infineon Cuts Stake in Qimonda Memory Maker to 78.6 Percent
FRANKFURT, Germany (AP) -- Semiconductor maker Infineon Technologies AG said Friday that it has cut its stake in Qimonda AG, the memory unit it listed in 2006, to 78.6 percent, in part to increase its cash in hand.
The Neubiberg-based company said it sold 25 million Qimonda ADRS, or American Depositary Receipts, at US$10.92 (euro7.78) each, for a total of euro194 million (US$272 million).
The move did not include an option to sell another 3.75 million Qimonda shares that would, if exercised, reduce Infineon's stake to 77.5 percent.
Last month, Infineon said it planned to lower its stake in Qimonda to less than 50 percent with two years.
Infineon listed Qimonda in 2006 on the New York Stock Exchange, but retains an 86 percent stake in the company that makes chips for PCs. Investors have long urged that ties be cut, in part to avoid the cyclical nature of the industry.
Shares of Infineon were up nearly 1.3 percent to euro12.01 (US$16.85) in Frankfurt trading. Qimonda shares fell 1.1 percent to euro7.72 (US$10.83). |
