* Bloomberg reports Infineon nears $2 billion deal
* Says Infineon to buy unspecified U.S. chipmaker
* Infineon says won't comment on "market rumours"
* Says is still on lookout for takeovers
* Infineon shares down 1.4 percent
(Adds background on Infineon strategy, share price, possible
FRANKFURT, Aug 20 Germany's Infineon
is nearing a deal to buy a U.S.-based semiconductor company for
about $2 billion, Bloomberg reported on Wednesday, citing people
familiar with the matter.
A deal could be announced later on Wednesday, Bloomberg
said, without saying which company Infineon was targeting.
The report pushed down shares in Infineon by as much as 3.2
percent in early afternoon trade. They had regained some ground
by 1154 GMT, trading 1.4 percent lower at 8.596 euros.
"We do not comment on market rumours," a spokesman for
Infineon said, but reiterated that the company had been on the
lookout for takeover opportunities for some time.
Shareholders have been calling on Chief Executive Reinhard
Ploss, who has been at the helm for almost two years, to use
Infineon's cash pile of more than 2 billion euros ($2.7 billion)
to make acquisitions or return the money to investors.
On July 30, Infineon board member Arunjai Mittal told
analysts that the group would pick any target according to its
strategic fit, how difficult post-merger integration would be
and how much it would add to Infineon's sales and profits.
Among U.S. chipmakers of roughly the size that Bloomberg
cited are Fairchild Semiconductor International, Diodes
and International Rectifier.
Bloomberg has also named Power Integrations and
Semtech as possible takeover targets in the chip
(1 US dollar = 0.7528 euro)
(Reporting by Maria Sheahan; Additional reporting by Joern
Poltz in Munich, Victoria Bryan in Berlin and Supantha Mukherjee
in Bangalore; Editing by Victoria Bryan and Pravin Char)