STMicroelectronics Denies Breakup Rumors
STMicroelectronics (NYS: STM) issued a statement denying media reports that it is considering a breakup. Those reports, citing unnamed individuals familiar with the matter, had it that one possibility was for the company to split itself in two, with its analog and digital businesses becoming separate entities. The former, which includes such products as chips and sensors, is seen as the business with better potential, in part because several of the company's key customers for its digital goods -- mainly semiconductors -- are struggling. Those customers include Nokia (NYS: NOK) , Research In Motion (NAS: RIMM) , and Alcatel-Lucent (NYS: ALU) .
The company's analog products include motion sensors used in Apple's (NAS: AAPL) popular iPhones.
In its tersely worded statement, STMicroelectronics said it "denies the existence of initiatives which can compromise the unity of the Company." It did not elaborate.
STMicroelectronics, registered in the Netherlands and headquartered in Switzerland, is Europe's largest manufacturer of semiconductors. It posted revenues of 1.67 billion euros ($2.2 billion) and recorded a net loss of 59 million euros ($76 million) in Q2 of this year. It is set to report Q3 results on Oct. 23.
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