FRANKFURT (Reuters) - Infineon Technologies raised 1.545 billion euros (£1.4 billion) in an accelerated capital increase to help fund the cost of its planned acquisition of Cypress Semiconductor, it said late on Monday.
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Shares were placed at 13.70 euros apiece, above an initial guidance by the bookrunner but 4.6% lower than the 14.36 euros Infineon shares closed at on Monday - a relatively small discount for a transaction of this size.
The German chipmaker said in a statement that the offering of new shares, by way of a private placement to institutional investors, would increase its share capital by 10%. The 113 million new shares were placed in less than two hours.
Infineon said on June 3 it had agreed to buy Silicon Valley-based Cypress for $10 billion, paying a 46% premium to expand into next-generation autos and Internet technologies.
"Infineon said it will equity finance about 30% of the ... deal. So another at least 1.15 billion euro measure is still open," a Frankfurt-based trader said. "We think investors would have preferred that Infineon secures financing in one stop, now hangover will weigh on shares."
Shares in Infineon were indicated to open 4.9% lower in pre-market trade, compared with a flat DAX.
(Reporting by Douglas Busvine, Alexander Huebner and Christoph Steitz; Editing by Jane Merriman and Michelle Martin)