Feeds

Infineon to sell shares to raise investment cash, pay off debt

To Infineon and beyond

  • alert
  • submit to reddit

Gartner critical capabilities for enterprise endpoint backup

German chipmaker Infineon has laid plans to sell shares in the US in order to fund investments during a time of deeply declining DRAM prices.

Infineon has filed a registration statement with the Securities and Exchange Commission (SEC) to allow it to conduct a public offering in the US.

The amount of shares to be sold and timing of the issue has not yet been set, but the firm has the authority to issue up to 60 million shares. It has hired Goldman Sachs to manage the sale. Shares in Infineon feel slightly to $35.5 last night on news of the offer.

Infineon spokeswoman Katja Schlendorf told Bloomberg that the offer would be used "to raise cash for future investments, potential acquisitions or the repayment of short-term debt".

Prices of DRAM chips have fallen to around $2 against the $3.40 it costs Infineon to manufacture them. Against this background, Infineon is moving into the production of smart cards and chips for the telecoms market but DRAM still makes up the majority of its sales.

A share offer would help finance this move and also further its goal of diluting the influence of majority shareholder Siemens on its business.

As previously reported, Infineon chief executive Ulrich Schumacher said Siemens should cut its stake in Infineon from its current 56 per cent to just 10-15 per cent. Siemens too wants to reduce its stake in its former chip division but it's unclear if it wants to go as fast as Schumacher is suggesting.

Last month Infineon won the patent infringement lawsuit filed against it by Rambus but it is due to receive only ten per cent of the punitive damages awarded to it by the jury in the case, just $350,000. ®

Related Stories

Infineon sees sun through DRAM clouds
Infineon boss seeks fuller break from Siemens
Infineon damages slashed
Infineon lets Rambus retain SDRAM patents
Infineon to start churning out 300mm wafers in second half

The essential guide to IT transformation

More from The Register

next story
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Premier League wants to PURGE ALL FOOTIE GIFs from social media
Not paying Murdoch? You're gonna get a right LEGALLING - thanks to automated software
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ballmer quits Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.