Infineon seeks Eu450m rights issue approval

Loss making chip maker Infineon will ask its shareholders to authorise a Eu450m capital increase in its annual general meeting, to be held next month, but does not currently plan a deal. It will give the company flexibility in its financing strategy, and equity bankers argue that more companies need to follow Infineon’s example of getting precautionary approval that will greatly shorten the timing, and therefore the risk involved, of rights issues. But will more companies follow suit? Read EuroWeek on Friday.