Ericsson To Take $1.2 Billion Charge On STMicroelectronics NV Stake; Sees Charges In Q4 2012; Not To Buy STMicroelectronics's 50% Stake In JV-Reuters
Reuters reported that Ericsson is taking a $1.2 billion charge in a bid to write off its exposure to ST-Ericsson, adding to doubts over the future of the loss-making joint venture (JV) after partner STMicroelectronics NV said it was pulling out. Ericsson would take the SEK8 billion hit in its fiscal fourth quarter 2012 in a move set to plunge it into a net loss for the three month period. The Swedish group would not buy STMicroelectronics's 50% stake in the mobile chip making venture, confirming its previous indications and leaving the future of the venture's 5,000 employees staff looking uncertain.
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