Infineon backs off on planned IPO

Germany's Infineon will probably not succeed this year in public offering of its memory chips business, which will be spun off later in the year, an AFP report said.


The report quoted a source within the company as saying that "we are trying desperately to meet the deadlines, and we are not even in agreement on a name for the new enterprise."


The report said that under these conditions, an initial public offering of a legally independent company in charge of memory activities for Infineon "will not be possible this year," according to the source.


Earlier, Infineon CEO Wolfgang Ziebart told shareholders during its annual meeting that the group intended to create an independent entity out of the memory products business by July 1.


While it would initially remain a wholly owned subsidiary of Infineon, "eventual flotation is still our preferred option," Ziebart said, without giving any hint about its timetable for the move, the report said.


Infineon had already announced its spin-off plans in November, leading some analysts to predict a rapid stock market listing, the report further said.