FRANKFURT (Thomson Financial) - Shares in Infineon Technologies AG were higher in late afternoon trade on rumours US peer Advanced Micro Devices Inc (AMD) might launch a 16.95 usd per share bid for the German chipmaker's DRAM unit, Qimonda.
At 4.01 am, shares in Infineon were 0.29 eur or 2.42 higher at 12.29, making it the top gainer on the DAX, which was 11.84 eur or 0.16 pct lower at 7,424.79.
'The rumour is not exactly new, but whether it is credible or not is hard to say,' said a Frankfurt-based trader.
He said Infineon's ability to sell the rest of 86 pct it holds in Qimonda has largely been thought by experts to be dependant on DRAM prices.
'Currently, DRAM prices are still under pressure, but appear to be recovering slightly,' the trader said. 'Many believe that Infineon won't sell its stake until prices recover and it can get more for the shares.'
AMD could not be reached for comment. A spokesman for Qimonda said the company could not comment on market rumours.
Infineon holds a 86 pct stake in Qimonda, while the remaining 14 pct is listed on the New York Stock Exchange. Tyler.Sitte@thomson.com ts/ms1 COPYRIGHT Copyright AFX News Limited 2007. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
© 2007 AFX News
