Infineon (IFNNY)

[mlkrborn]

Apollo To Have Supervisory Bd Seat With 10% Stake In Infineon
Last update: 7/17/2009 7:09:38 AM
FRANKFURT (Dow Jones)--Financial investor Apollo Global Management LLC would only have to acquire a stake of 10% Infineon Technologies AG (IFX.XE) to nominate one supervisory board member, according to the prospectus for Infineon's upcoming rights issue.
Apollo, which is backstopping Infineon's EUR725 million rights issue, will have the right to name the chairman and one other member of the supervisory board if it gets a stake of at least 15% in Infineon, the semiconductor maker said last week. Apollo is targeting a stake of between 15% and 30% in Infineon.
Infineon will issue up to 337 million new shares with a subscription price of EUR2.15 a share, while New York-based Apollo has agreed to acquire up to 326 million new, unsubscribed shares, subject to certain conditions, effectively underwriting the placement. The subscription period begins Monday.
If it doesn't reach the 15% stake, Apollo can back out of its subscription obligation and would receive a lump sum payment of EUR21 million from Infineon, according to the prospectus.
-By Philipp Grontzki, Dow Jones Newswires, [phone]; [e-mail]
(END) Dow Jones Newswires
July 17, 2009 07:09 ET (11:09 GMT)