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Infineon Technologies Case FM
Infineon Technologies Case FM
FM-II
GROUP-3, SECTION-F
Arjit Gupta 19/307
Rishi Gurudas K 19/313
Pranita Agarwal 19/324
Rupali Chugh 19/335
Shorya Chaplot 19/344
Formation of
2000Company
Raised Capital
1.5 bn Equity
2 bn Debt
700 mn Divestments
2001
Raised Capital
1 bn 5yr convertible
2002
bond
700 mn 7yr convertible
bond
Raised
2009Capital
Divestment
2011
1.1 bn Sold
Wireless Unit
2008
2009
2010
2011
0.45
0.16
0.1
0.07
Uses of Funds
To keep consistent investments in R&D department
To repay some of the debt
To maintain cash reserves to sustain the sectors cyclical and capital intensive nature and
the need to be on the lookout for acquisition opportunities
5. Given Infineons primary objective, what are the pros and cons
of these payout methods?
Pay-out Method
Pros
Regular cash
dividends
Open market
repurchases
Fixed-priced
self-tender offer
Dutch-auction
self-tender offer
Cons
Thank You!