Siemens dumps Infineon shares

Siemens has announced that it will no longer consolidate the results of troubled semiconductor maker Infineon Technologies, a day...

Siemens has announced that it will no longer consolidate the results of troubled semiconductor maker Infineon Technologies, a day before holding an annual conference to discuss its disappointing fiscal year.

Siemens has sold enough Infineon shares to reduce its stake from 50.4% to less than half, the company said. It has also transferred 200 million Infineon shares to an irrevocable trust, the trustee of which is not allowed to exercise voting rights on the shares.

Siemens retains the power to sell the shares in the trust to third parties, and all proceeds from share sales and dividends flow back to Siemens. The result is that independent Infineon shareholders now hold the majority of voting power, Siemens said.

Siemens reported last month a fiscal fourth quarter loss of 1.1bn euros ($1bn) including Infineon losses.

Infineon is not alone in its struggle against a losing economic equation: DRam (Dynamic Ram) chips sell for less on the open market than they cost to produce.

Siemens' annual financial conference will take place on 13 December and will be broadcast live via the company's Web site.

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