Qimonda AG American Depositary Shares (fka QMNDQ)

[artmaniac]

UPDATE 1-Infineon upbeat on chances for Qimonda stake sale
Date : 11/11/2008 @ 8:08AM
Source : TFN
Stock : Qimonda Ag (QI)
Quote : 0.132 -0.0069 (-4.97%) @ 1:43PM


UPDATE 1-Infineon upbeat on chances for Qimonda stake sale




MUNICH, Nov 11 (Reuters) - German chipmaker Infineon is still in
negotiations to sell its stake in its Qimonda memory chip unit and is optimistic
it will come to a conclusion this year, Infineon's chief executive said.
"We believe we have good chances to conclude negotiations," Chief
Executive Peter Bauer said on the sidelines of an industry event in Munich on
Tuesday.
He reiterated he wanted to sell the majority of Infineon's 77 percent
stake by the end of the year and if needed give the rest of the shares to
shareholders.
Worries about Qimonda sent stock in parent Infineon down as much as 8.5
percent on Tuesday. It was down 6.82 percent at 2.46 euros by 1223 GMT.
Bauer declined to comment on concerns that Qimonda could face a collapse
due to an ongoing slump in prices for dynamic random access memory (DRAM) chips,
used mainly in PCs.
However, the CEO said Qimonda and its competitors have been hit hard by
the rapid decline in prices.
"Times are worse than we ever expected," Bauer said.
Infineon has been trying to find a buyer for the stake in Qimonda it owns
after carving out and listing its former memory chip unit in 2006 in the hope of
cutting its exposure to the volatile memory chip market.
Bauer reiterated Qimonda could not expect a cash injection from Infineon.
He also said Infineon was in good condition to make it through the
current crisis.