By Kate Hanaghan, 29 November 2001 11:25
NEWS German chip maker Infineon saw its share price fall three per cent this morning following allegations that it received inappropriate funding from the German government. EU Competition Commissioner Mario Monti wants to investigate a E219m (£136m) subsidy from the German government to Infineon, to establish whether this funding breaches competition rules. The funding helped Infineon build a chip factory in Dresden - aimed at generating more than 1,000 jobs. Brussels is concerned that the amount exceeds the maximum state aid allowance. If found guilty, Infineon - already struggling considerably in a fragile market - will have to return the money to the government. By 09:50(GMT), the company's share price was down 3.3 per cent to E21.08 (£13.05). This compares with a 52-week high of E53.3 (£33.1).
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