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Infineon cash-raising plans fail to woo investors

See that share price dive, dive, dive...

By Joey Gardiner

Published: 2 July 2001 11:00 BST

Shares in German chipmaker Infineon fell sharply today after it gave the final details of its proposed money-raising share offering.

The news comes as it continues to battle against possibly the toughest ever market for semiconductor firms.

Infineon announced it would seek to sell up to 60 million new shares, worth in excess of E1.7bn. Infineon's Finance Director Peter Fischl this morning reiterated that the adverse market conditions would lead to a E600m (£360m) loss in the next quarter.

Many investors are worried that the timing is wrong for such a large money raising effort. However, Infineon has little choice but to press on, with the money needed to pay debts and generate working capital.

Infineon's share price fell 2.5 per cent on the Frankfurt Dax in early trading today. The company has lost almost half its value in the last two months.

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