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.

The amount of data we store every year is growing by a mind-boggling 60% annually! To make sense of this trend and pick out a winner, The Motley Fool has compiled a new report called "The Only Stock You Need To Profit From the NEW Technology Revolution." The report highlights a company that has gained 300% since first recommended by Fool analysts but still has plenty of room left to run. Thousands have requested access to this special free report, and now you can access it today at no cost. To get instant access to the names of this company transforming the IT industry, click here -- it's free.

The article STMicroelectronics Denies Breakup Rumors originally appeared on Fool.com.

Eric Volkman owns shares of Nokia. The Motley Fool owns shares of Apple. Motley Fool newsletter services recommend Apple. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.