The resignation of Infineon Technologies AG CEO Wolfgang Ziebart on Monday prompted the media and analysts to talk about
M&A options for the German chipmaker. And at the top of the list was a merger with Kohlberg Kravis Roberts & Co. portfolio company NXP Semiconductor, a deal that Ziebart was reputedly against and that may have cost him his job.
Trade publication The EE Times
writes that:
the company had announced Ziebart's resignation after a lasting power struggle between him and the supervisory board. Infineon's official press release states "different opinions" being the reason for Ziebart's decision. Company officials declined to provide details, but the way the power struggle particularly between Ziebart and supervisory board chairman Max Kley has been led suggests that the differences arose on the question of a possible close cooperation with NXP Semiconductor BV, which would include the option that NXP principal shareholder, the private equity company Kohlberg Kravis Roberts Co., could acquire a major stake in Infineon. Over the past weeks, Kley reportedly was in talks with both companies.
KKR's NXP is not the only potential suitor waiting in the wings either. Freescale Semiconductor Inc., which is a Blackstone Group LP portfolio company, also has been mentioned as a candidate for a tie-up with Infineon.
The EE Times story goes on to cite Infineon's poor financial performance as another likely reason for the CEO's departure. Nonetheless, the board's plans for the management of the company from now on are telling. Infineon will not be hiring a new CEO; instead, a four-person management board will jointly run the company. With rule by committee being installed, one has to wonder just how long the board expects Infineon to stay independent. - George White
See Infineon announcement
See EE Times story
See Tech Confidential post about Infineon
