* Infineon says $40 per share offer for U.S. firm is
* Says deal to begin to boost Infineon earnings by end of
* Says margin improvements will show up in second yr after
(Recasts with Reuters source, adds U.S. share prices, details)
By Alexander Hübner
FRANKFURT, Aug 20 Merger-shy German chipmaker
Infineon has agreed to buy Silicon Valley-based
International Rectifier for about $3 billion in cash,
Infineon said on Wednesday, in its biggest-ever acquisition.
Terms call for it to pay $40 per share for the U.S. company,
a maker of power-supply chips. The deal has been approved by
International Rectifier's board and is expected to close late in
2014 or early in 2015, subject to regulatory approvals, Infineon
Shares of International Rectifier rose to $39.15 following
the news, a gain of $12.59 or 47 percent on the day on the New
York Stock Exchange.
Infineon shares had closed down 1.38 percent ahead of the
announcement. Its shares had dipped, while those of several
possible targets rose, following reports that the Munich-based
firm was preparing to buy a U.S. chipmaker.
Infineon said the acquisition is expected to start boosting
its reported earnings per share by the end of the fiscal year in
which the deal closes.
Based on International Rectifier's current restructuring of
operations, it added that in the second full fiscal year after
closing International Rectifier's profit margins would be "at
least in line with" Infineon's projected multi-year margin
targets of 15 percent.
Infineon, whose chips activate car airbags, enable cruise
control, manage power supplies and cut vehicle emissions, has
shunned major takeovers since it was spun off from engineering
conglomerate Siemens in 1999, as it struggled for
years to turn a profit at a memory-chip unit it previously
($1 = 0.7528 euro)
(Reporting by Alexander Huebner; Writing by Maria Sheahan in
Frankfurt and Eric Auchard in Vienna; Additional reporting by
Joern Poltz in Munich, Victoria Bryan in Berlin and Supantha
Mukherjee in Bangalore; Editing by Victoria Bryan and Pravin