Infineon to cut stake in Qimonda over 'irreconcilable differences'

Chip maker Infineon Technologies will lower its stake in Qimonda to less than 50% within two years and released its chief financial officer, citing 'irreconcilable differences,' an Associated Press report said.

The Associated Press report said Infineon spun off Qimonda in 2006, listing it on the New York Stock Exchange, but retains an 86% stake in the company that makes chips for PCs.

Investors have long urged that ties be cut, in part to avoid the cyclical nature of the industry.

Last month, Infineon posted a wider third-quarter loss of 197 million euros ($269.77 million) in part because of losses at Qimonda that totaled 218 million euros ($298.53 million).

The report said Infineon terminated the contract of CFO Ruediger Guenther, 49, who replaced Peter Fischl in May. Fischl, 61, who retired, has been brought back to fill the job on an interim basis.

The company said in a statement that its supervisory board 'decided to release Guenther from his positions due to irreconcilable differences and immediately initiated the contract termination.'

The company did not elaborate when called for comment. Besides being CFO, Guenther was also the company's labor director.

In a statement, Infineon said it would reduce its stake to less than 50% by the time it holds its 2009 shareholder meeting.