STOCKS NEWS EUROPE-Infineon seen lower on cap increase

Shares in Infineon (IFXGn.DE) are indicated 2.7 percent lower in pre-bourse trade, making them the sharpest decliners among German tech stocks .TECDAX after sources say the embattled chipmaker is preparing a capital increase to shore up its finances.

U.S. activist investor Apollo Management LP [APOLO.UL] is about to take a stake of up to 29 percent, or 325 million shares, as part of a capital injection, one of the sources says, while The Financial Times Deutschland cites unspecified sources saying the new shares should be offered at 2.15 euros apiece.

"Plans for capital increase are not surprising, but the possible offer of 325 million shares at 2.15 euros should nonetheless drag down the stock today," says a local trader.

Infineon has declined to comment.

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