Infineon said it would reduce its stake in Qimonda AG to “significantly” less than 50 percent not later than 2009.

The company said it will continue with its strategy to reduce its stake through secondary offerings and other capital markets measures with any cash inflow from such sales to be used for selective acquisitions to strengthen Infineon’s business or to repurchase Infineon shares.

Infineon’s plan also plans to take necessary measures at its annual shareholder meeting 2008 to allow distribution of Qimonda shares as a dividend in kind to Infineon shareholders, which would allow such a dividend to be possible after the annual shareholder meeting 2009, the company noted.

Infineon president and CEO Dr. Wolfgang Ziebart said in a statement, “Carving-out and listing our memory business [now Qimonda AG] last year effectively created two focused companies, each with a well-defined strategy and clear prospects.”

By: DocMemory
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