With a $1bn capital hike guaranteed by financial investor Apollo Global Management, Infineon can resolve its financial problems. Actually, after the capital increase the company will sit on a nice nest egg. But at what a price?

So far, not much is known as to Apollo's strategy and goals. The company, launched in 1990 and currently with more than $40 billion under management, specializes in distressed investments and after restructuring typically expects double-digit return on investments.

Among Apollo's investors is the Abu Dhabi Investment Authority, the same group that recently poured funds into Advanced Micro Devices (AMD) and helped fund the spinoff of AMD's manufacturing activities as the foundry services provider GlobalFoundry.

A central part of the agreement between Infineon and Apollo is that the latter one will have the right to denominate the supervisory board chairman, and most likely another representative in the 15-head committee.

Sources near the company pointed out that Apollo is heading for a long-term commitment instead of quick asset stripping. There are also plans to get involved into the operational business. Apollo won't be a silent partner but act as an active participator, a source close to the company said.

We are not sure if this should be seen as a promise or more as a threat. Over the past years, financial investors failed to prove that they were able to handle this kind of business more skillfully than grown-up semiconductor experts. We remember that NXP's and Freescale's situation did not really improve once they were taken over by financial investors. Against this background, a good amount of skepticism is recommended with regard to the Infineon/Apollo deal.

The big question is how Apollo will use its influence to control Infineon's structure and its business decisions. As recently as this week, Infineon CEO Peter Bauer pointed out that no further sales of company divisions or activities are planned. Apollo also has given hints that it intends to leave Infineon intact. Also there are no plans to exchange the current management team – at least that's what Apollo says before the deal is completed.

But the investor's double-digit profit expectations, if realistic in the semiconductor business, have to be realized somehow and somewhere. In order to activate them, tough restructuring measures are to be expected. Even Infineon insiders admit that the company is significantly overstaffed. It would be no surprise if this is the point where first measures will take place.

In the mid- to long term, everything is possible and nothing can be ruled out — from mergers to restructuring and production outsourcing. As long as the investor does not clearly state its intentions, business partners as well as workers will be unsettled. Apollo is obligated to step out of the fog and to clarify its positions. It is in its own and in Infineon's interest.

Additional reporting from Bolaji Ojo.

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