Infineon wants to keep its cash for opportunistic acquisitions

Article by Christian A., on June 13, 2011

Infineon Technologies AG has more than 2 billion euros ($2.9 billion) in net cash. Europe's second largest maker of semiconductors said that a portion of this will be used for opportunistic acquisitions in its three main businesses: mobility, energy efficiency and security.

When CEO Peter Bauer was interviewed in Singapore, he said that the cash will be used for expansion and for M&A. It’s likely that Infineon will attempt to make deals in the areas of power, power conversion and power management.

It’s least likely that it will enter the automotive market since a majority of the companies here are “too large.”

The recovering economy and the boosted technology spending have benefited chipmakers. In early May, Infineon has raised its forecast for the entire year for five times since the start of 2010. Meanwhile, Intel Corp., the world's biggest semiconductor producer, posted its second dividend increase in six months on May 11.

So far, the recovery has prompted deals like Texas Instruments Inc.'s acquisition of National Semiconductor Corp. Bauer said that when possible, he doesn’t want to buy when peaking and there's a lot of premium.

He said that the company isn’t being pressured to buy other firms but it is observing the market for timing. He added that the company is looking for a strategic fit. Bauer cited the premium Texas Instruments will pay out to acquire National Semiconductor Corp. for $6.5 billion, which is 78% higher than the closing price before the announcement on April 4.

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Cadillac’s CT6 full-size prestige-luxury sedan is still somewhat new. It has been offered to the global auto market for two model years – 2016 and 2017. But for those who...
by - February 19, 2017
In many industries, it is the rivalries that make things exciting. In basketball for example, there is the well-known rivalry between the Los Angeles Lakers against the Boston Celtics. For...
by - February 19, 2017
Now on sale in several major markets around the world including Europe, the BMW 5 Series (G30) heralds the arrival of the new seventh generation and represents a whole new...
by - February 19, 2017
Just recently, it was speculated that a new Porsche Cayman GT4 RS is coming. There is no official confirmation yet from the German sports car maker, but the arrival of...
by - February 18, 2017
Will there be a BMW M4 CS? Apparently, there is a Club Sport version of the BMWM4 after it was sighted in California doing a shoot for a new commercial...
by - February 18, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries