How do you sell something nobody wants? That's the problem facing Infineon as it seeks a buyer for its 77 percent interest in memory maker Qimonda.
Qimonda's cash flow isn't enough to lure private equity, notes Infineon CEO Wolfgang Ziebart. Infineon could distribute Qimonda shares to its investors, but the stock price has fallen to a low of $3.04 from a 52-week high $17.29. So Infineon has been talking to other DRAM vendors, hoping one will want Qimonda for its technology, plants and designers.
Infineon's options are few, and most would probably result in a book loss of its investment in Qimonda.
Advanced Micro Devices is headed in the same direction if its top executives keep dragging their feet on the reorganization and asset-smart manufacturing strategy they floated about a year ago. AMD's stock price fell back to $5.96 on April 22 after pulling up from a 52-week low of $5.31. Its long-term debt far exceeds its market value.
AMD must resolve its financial crisis before events force a fire sale. Like Qimonda, it might not find many takers.