That's the problem facing Infineon Technologies AG as it tries to find a buyer for its 77.5 percent stake in memory IC manufacturer Qimonda. Private equity investors aren't interested in Qimonda, according to Infineon CEO Wolfgang Ziebart, because the company's cash flow isn't attractive enough.

Infineon could distribute Qimonda shares to its investors, but stockholders might not be so receptive to that idea. Qimonda's stock price has fallen in recent weeks to a low of $3.04 from the 52-week high $17.29. Investors might not want to be saddled with additional shares in Qimonda because management may need them to chip in if cash runs low.

So, Infineon has been talking with other DRAM suppliers, according to Ziebart. Reports say those talks include Micron Technology, Elpida and Hynix. One of them might be interested in taking Qimonda just to gain access to its technology, plants and engineers.

The options available to Infineon aren't that many, and most of these would probably result in a book loss of its investment in Qimonda.

By: DocMemory
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