S&P: STMicroelectronics, Intel unaffected

Standard & Poor's said its ratings and outlooks on STMicroelectronics NV (A-/stable/A-2) and Intel Corp. (A+/stable/A-1+) are unchanged following news of the companies' agreement to merge their flash memory businesses into a new independent semiconductor company.

These activities had combined 2006 sales of about $3.6 billion, with solid positions in wireless applications, the agency said.

According to the agreement, STMicroelectronics will receive a 48.1% stake in NewCo and $468 million in cash, in exchange for the contribution of its memory assets, Intel will receive a 45.1% stake and $432 million in cash for the same contribution, the agency noted.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.