Ericsson won't buy out ST from ST-Ericsson; takes $1.2bn charge.
Ericsson says it will not buy out STMicroelectronics from their loss-making jv ST-Ericsson.
ST has said it will exit the jv by Q3 but hasn’t said how.
Ericsson says it will take a charge of $1.2bn in Q4 for writing down the cost of its share of the jv.
Ericsson and ST put $1.8bn cash into the jv in 2008. ST paid NXP $1.7bn for NXP’s wireless operations.
Ericsson says that its share of the operating loss from the jv is $1.42bn.
Ericsson also says that it expects to incurr another $450m of costs before it can get out of the jv.
ST has said it expects to incur another $550m of costs from the jv before it exits in Q3.
ST-Ericsson had incurred debts of $1.35bn by the end of Spetember. It has cash of $39m.