OSRAM investment to build LED chip factory in Malaysia

Germany OSRAM lighting maker announced last week that will invest in LED chip factory in Malaysia, was immediately criticized the timing of the fifth-largest shareholder and will not dilute earnings and be opposed. Factories after the news, the stock price fell 25 percent and hit its biggest single-day decline. According to Reuters, OSRAM has announced it will invest $ 1.1 billion to build LED chip factory in Malaysia, so that the original investors expected the company's lighting business after the sale, it will be moved to a higher profit cars or street lighting market Broken Dreams.

OSRAM holds 2% stake in the fifth-largest shareholder - the joint fund, its manager Michael Muders mentions that "shareholders lose large sums of money, the management has lost confidence."

Over the past four years, due to the gradual unable to compete with Asian rivals, OSRAM has cut one-fifth of the capacity. German monthly magazine Manager reported earlier, Muders new growth strategy "shock."

Last Wednesday, after OSRAM announced the new plan, its stock fell a quarter and a record decline in the company's single largest trading records. Although after the day of the transaction price to 39.04 euros, down 24% 0.7% rebound, almost no recovery.