Infineon Undervalued Former Chip Unit Qimonda by $1.88 Billion, Court Expert Says
January 09 2024 - 3:07AM
Dow Jones News
By David Sachs
Infineon Technologies undervalued its defunct memory-chip
business, Qimonda, by 1.72 billion euros ($1.88 billion) during its
carve-out for a public listing, the German semiconductor company
said, citing a court-appointed expert's decision in a legal dispute
spanning 14 years.
Qimonda, a memory-chip company in which Infineon owned a
majority stake, filed for insolvency in 2009, three years after its
public listing. Insolvency administrator Michael Jaffe later sued
Infineon in Munich district court, claiming that Qimonda was
entitled to a reimbursement because Infineon omitted certain
declarations during the carve-out.
Infineon said late Monday that the expert pegged Qimonda's
foreign business at minus EUR1.045 billion and its domestic
business at minus EUR72.3 million, but that the sum does not equate
to a liability for Infineon.
"The submission of the opinion represents an interim step in the
pending legal dispute," the company said. "The amount of potential
liability of Infineon depends on other aspects."
Jaffe did not immediately respond to a request for comment.
Infineon said it is unclear when a decision by the court will be
reached.
As of Sept. 30, Infineon said it has recognized EUR212 million
in provisions related to the lawsuit with Qimonda.
Write to David Sachs at david.sachs@wsj.com
(END) Dow Jones Newswires
January 09, 2024 02:52 ET (07:52 GMT)
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