STMicro (STM) Will Maintain Structure as Board Remains Split

November 15, 2012 12:28 PM EST
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STMicroelectronics (NYSE: STM) will stock together to the end, says the company.

According to reports out Thursday, a split of the company has not come into favor of the board, meaning smaller asset sales might take place moving forward. News comes following squabbles between Italian and French executives over how the company could best return value to shareholders.

Notably, the board also has to convince French and Italian governments, which own an aggregate 27.5 percent of STMicro, of the plan.

STMicro has seen pressure as its digital business appears to be dragging down the company, while its analog segment continues to thrive. With digital, its become a price issue as STMicro looks to compete more wholly with Asian manufacturers. U.S. and Asian manufacturers have also shifted to "fabless" models, which outsources manufacturing to outside factories, thus cutting expensive overhead costs.

Today, STMicro is down about 2 percent. Shares have been on the rise since July, but are still well below the annual mark above $8.25 hit last March.

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