Feeds

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

To Infineon and beyond

  • alert
  • submit to reddit

Bridging the IT gap between rising business demands and ageing tools

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 Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.