Ericsson said it will take a $1.2bn charge in the fourth quarter related to its money-losing chipset joint venture with STMicroelectronics, ST-Ericsson. By Phil Goldstein.
The $1.2bn write-down for Ericsson comes less than two weeks after STMicroelectronics said it will sell off its stake in ST-Ericsson, which it expects to complete during Q3 2013. Ericsson said the charge is related to writing down its assets to reflect Ericsson’s best guess of how much its share of ST-Ericsson is worth as well as additional charges related to strategic options for the joint venture.
However, Ericsson ruled out buying STMicro’s share of the venture.
“We will pursue and look into all strategic options we have for the assets,” Ericsson CEO Hans Vestberg said. “We will not exclude anything but of course our prime focus is to get a good solution and that is not the best solution to shut it down.”
FierceWireless: Ericsson to take $1.2B charge in Q4 related to ST-Ericsson venture; TelecomTV content partner.
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