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Portugal state-run CGD behind Qimonda loan -source

Mon Dec 22, 2008 5:57am EST

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LISBON, Dec 22 (Reuters) - Portugal's state-run bank Caixa Geral de Depositos (CGD) is providing 100 million euros as part of a lifeline loan for troubled memory chipmaker Qimonda QI.N, a source close to the deal said on Monday.

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The German state of Saxony, where Qimonda operates a plant, and Qimonda's controlling shareholder Infineon (IFXGn.DE) announced on Sunday a 325 million euro rescue package for Qimonda, which has its second European plant in Portugal and was the country's biggest exporter in 2007.

Sunday's statement said a Portuguese bank, which was not named, would provide 100 million euros of the loan. Saxony will put up 150 million euros and Infineon 75 million.

CGD officials on Monday would not confirm or deny the bank's involvement.

The source told Reuters CGD, which is Portugal's largest bank, was behind the 100 million euro credit line. Officials of the bank would not confirm or deny CGD's involvement.

By 1010 GMT, shares in Infineon soared 12 percent and Qimonda shares (QI1Ay.F) 68 percent in Frankfurt floor trading, boosted by the bailout news.

Portuguese media quoted Economy Minister Manuel Pinho as saying the lifeline was "extremely important in terms of exports, added value and preservation of jobs." Qimonda employs 1,800 people at its Vila do Conde plant in the north of the Iberian country.

(Reporting by Elisabete Tavares and Andrei Khalip; editing by John Stonestreet)

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