Infineon: stock flat after Qimonda settlement

(CercleFinance.com) - Infineon shares are fairly flat in Frankfurt today, after the chipmaker reached a settlement agreement with Qimonda's insolvency administrator on Thursday evening, in return for E800m (E753.
5m without previous agreements).

This mutual agreement puts an end to a dispute before the Bavarian courts concerning Qimonda's bankruptcy dating back to the end of 2010, in which the receiver claimed E3.4bn plus interest from Infineon.

Recalling that provisions in Infineon's accounts for this case amounted to E212m at end-2023, Stifel warns that the difference will be reflected in the income statement for the 2023-24 financial year, expected on 12 November.

The high amount of the agreement is a negative surprise for us, acknowledges the broker, which nevertheless reaffirms his "buy" recommendation on the stock, along with its target price of E38, judging that it does not change the long-term investment case.


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