Infineon shares up on Qimonda sale rumors

Shares in Infineon Technologies AG are rising on amid reports that the sale of its remaining stake in DRAM supplier Qimonda AG is imminent, with Micron Technologies being quoted as the most likely buyer.

Shares in Qimonda have also risen, by 13.4 percent, to $2.28, on late trading Sept. 2.

The Financial Times Deutschland for instance suggested Sept. 3 that a sale could be negotiated within weeks, citing unspecified sources.

Infineon, however, would not comment on suggestions on a breakthrough in on-going talks with interested parties.

Last week, Elpida Memory Inc. said it had no plans to invest in the struggling German memory maker in a Reuters report, following suggestions that the Japanese DRAM maker could agree to pay Infineon between $1.1 billion and $1.3 billion for the 77 percent stake it still holds in Qimonda. The companies already collaborate on manufacturing.

Meanwhile, the The Idaho Statesman reported over the weekend that Micron investor relations executive Kipp Bedard hinted on a Boise radio show that the company was looking at potential acquisitions among its rivals.

"Our competitors are in terrible financial shape," Bedard said on Boise financial adviser Dave Petso's weekly radio show. "That does create opportunities for acquisition. We're looking at that right now."

The Statesman article stressed that Bedard did not directly confirm that Micron hopes to buy Qimonda, but reported that he said "This particular company we're talking about in Germany is selling at point-four book value. You couldn't build capacity at even close to that price."

- John Walko
EE Times Europe