Infineon CEO set to step down at end-June -source

MUNICH (Reuters) - Infineon AG (IFXGn.DE: Quote, Profile, Research, Stock Buzz) Chief Executive Wolfgang Ziebart will step down, probably at the end of June, a source close to the company's supervisory board told Reuters on Friday.

Ziebart's contract is due to expire in September 2009 but he is already negotiating terms of an earlier departure, the person said.

Infineon declined to comment. Ziebert was traveling abroad and was not immediately available.

Infineon shares rose 3.5 percent to 7.05 euros by 1138 GMT, the second-biggest gainer among German blue chips .GDAXI.

Germany's Boersen-Zeitung newspaper earlier reported that the former BMW AG (BMWG.DE: Quote, Profile, Research, Stock Buzz) executive would leave at the end of May given an increasing lack of confidence in him by the chipmaker's supervisory board.

The paper, which did not give the source of its information, said his departure was being negotiated with the supervisory board, which was due to hold an extraordinary meeting on May 31.

Chairman Max-Dietrich Kley had slammed Ziebart and his management colleagues at the group's annual meeting early this year, saying its losses needed more urgent action to reverse.

Kley later denied he was searching for a new CEO.

(Reporting by Jens Hack; Editing by David Holmes)