ST-Ericsson decision imminent
The parents of ST-Ericsson seem set to reveal their plans for the loss-making joint venture this morning, after calling an early morning conference call with staff.
Ericsson and ST-Microelectronics have asked staff representing the mobile phone chip maker’s workforce to join the call, stoking rumors they are set to pull the plug on the firm. Informing workers representatives of potential restructuring is something required by French corporate law, Bloomberg reports.
In the event of a break-up, Ericsson is tipped to take over an ST-Ericsson research facility in Sweden, and ST Microelectronics several sites in France, the newspaper states.
Speculation the parent companies may close the joint venture grew last week, after the pair failed to find a buyer for the firm. ST-Ericsson has reportedly racked up losses of €2 billion since its formation in 2009.