JP Morgan Chase Seeking a Buyer for ST-Ericsson
Published on: 21st Jan 2013
Note -- this news article is more than a year old.
By: Ian Mansfield
The joint shareholders in the semiconductor firm ST Ericsson have reportedly hired the investment bank JP Morgan Chase to investigate a possible sale of the loss making company
STMicroelectronics has already said that it is looking to get out of the joint-venture, while Ericsson has ruled out buying STMicroelectronics's stake in the company.
An ST-Ericsson spokeswoman confirmed to the Wall Street Journal that the company is working with an external advisor "to ensure the best possible future for ST-Ericsson," but declined further comment.
The joint-venture was set up in February 2009, with the merging of Ericsson Mobile Platforms and ST-NXP Wireless.
Ericsson contributed US$1.1 billion net to the joint venture, out of which US$0.7 billion was paid to STMicroelectronics.
At the time of formation, the company employed about 8,000 people - roughly 3,000 from Ericsson and approximately 5,000 from STMicroelectronics.
Since then, the company has struggled to reach profitability as revenues shrank, and the firm announced a restructuring programme earlier this year.
On the web: Wall Street Journal