Multinational electronics and semiconductor manufacturer STMicroelectronics (NYSE: STM) communicated major strategic shift today. A part of the plan is to sell its stake in the 50-50 wireless-chip joint venture ST-Ericsson. Its partner Ericsson (OMX ERIC B, NASDAQ: ERIC) said it will work with STMicroelectronics to find a suitable strategic solution.
The Swedish telecommunication and data communication systems provider said it believes ST-Ericsson will be a valuable asset as it too goes through some major changes including cost cutting measures. Years of losses have been a drag on both companies. While a decision is expected by Q3 2013, the companies do not plan to speculate further on potential outcomes.
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