Friday, June 9, 2006
A Bavarian court in Munich has rejected a complaint from two Infineon shareholders who challenged the legitimacy of the spinning off of memory company Qimonda AG from Infineon Technologies AG. The plaintiffs argued that the management was not entitled to decide unilaterally on the course of action, which should have been subject to shareholders’ approval.
The Infineon management reported on its plans to spin off the memory division to an Infineon shareholder meeting on Feb. 16, although the possibility of such a move had been much discussed in the press over the previous months. However, the management decided not to ask shareholders to approve the plan. According to the management's position, the board of directors was authorized to decide even without the shareholders’ approval.
Some experts said that if the plaintiffs had prevailed, Infineon could have been forced to stop Qimonda going public. However, Qimonda claimed that even if the court had handed down such a judgement, it would not have had negative consequences for a Qimonda IPO, which is scheduled for the second half of 2006.
The identity of the plaintiffs was not made public.
By: DocMemory
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