BERLIN Feb 3 European Union Industry
Commissioner Guenter Verheugen sees no chance to save Germany's
insolvent chip maker Qimonda QMNDQ.PK with the tools available
to the EU, he said in a newspaper interview on Tuesday.
"Nobody can save a company whose owner does not want to save
it," he told Saechsische Zeitung, a daily published in the
Saxony state capital Dresden, where Qimonda's main European site
Saxony's Economy Minister Thomas Jurk had previously asked
for EU help for the European chip industry.
"If a company no longer believes in a location, then the die
is cast in a free market economy," Verheugen told the paper,
adding that in general, public subsidies must not be spent in
order to bail out companies.
On Tuesday, employees of Qimonda in Dresden are planning to
stage a demonstration calling for a rescue of the company which
filed for insolvency in January, after it said a 325 million
euro ($418 million) rescue attempt by Saxony, parent company
Infineon (IFXGn.DE) and a group of banks had not come in time.
Shares in Infineon were up 0.8 percent at 0943 GMT, while
Germany's top-30 DAX index .GDAXI was up 0.2 percent.
Insolvency administrator Michael Jaffe has said Qimonda --
the world's fourth-biggest maker of DRAM chips -- required a
strong financial investor to come up with a sustainable
solution. According to a works council official the company has
until the end of March to find an investor.
(Reporting by Carsten Lietz; Editing by David Holmes)