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IFX - Infineon Technologies AG News Story

€32.05 0.7  2.2%

Last Trade - 11:55am

Sector
Technology
Size
Large Cap
Market Cap £35.46bn
Enterprise Value £38.70bn
Revenue £8.68bn
Position in Universe 37th / 1051

BUZZ-Infineon: Falls after $10 bln Cypress deal, price 'way too high'

Mon 3rd June, 2019 8:28am
** Shares in German chipmaker Infineon Technologies
 IFXGn.DE  drop 5.5%, hitting their lowest level in more than 2
years
    ** Infineon agrees to buy Cypress Semiconductor Corporation
 CY.O  for $10.1 billion, or $23.85/shr  urn:newsml:reuters.com:*:nL8N23A0LS
    ** Despite Cypress being an attractive target, "the price is
way too high", a trader says
    ** The trader adds that analysts indicated around $20 as a
fair price at the beginning of takeover rumors last Wednesday
    ** Moreover, the trader says, Infineon "would miss to become
a takeover target itself if management would fend off such a
fantasy by this deal"
    ** Liberum concurs that the acquisition is expensive at
around 16x2019 EV/EBITDA
    ** Stock at bottom of German blue chip index  .GDAXI  

 ((Linda.pasquini@tr.com))
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