Wednesday, January 12, 2005
Infineon has cancelled the sale of its fiber optics unit to U.S. Finisar due to delays and uncertainty.
The deal, already postponed more than once, would now not be recommended by Finisar to its shareholders, Infineon said, and in any case it would have been pushed back again by late filings to the U.S. Securities and Exchange Commission.
"The significant delay and high uncertainty of closing are expected to result in deterioration of our fiber optics business and in potential harm to our customers," Infineon said.
An Infineon spokesman said it would now first restructure the unit, although a sale at a later stage was still possible. He said there would be significant job cuts.
The sale, first announced last April, had been expected to create the world's largest firm specializing purely in optical components. It would have opened up new markets in automotive and consumer chips to Finisar. But the business worsened and the deal was repeatedly delayed.
By: DocMemory
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