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ST in Talks to Buy Motorola's Semiconductor Business

Time: 12:07 EST/17:07 GMT | News Source: CMP | Posted By: Fred Fernandez

STMicroelectronics is in discussions to acquire Motorola's semiconductor business, the Financial Times reported today, citing unnamed sources in the French and Italian governments.

Although both ST and Motorola denied such talks between the two companies as "complete rumor and speculations," one industry source in Crolles, France acknowledged that the three-way R&D alliance on the 300-mm project established earlier this year among ST, Philips and Motorola has led ST and Motorola to further negotiations on the possible sale of Motorola's semiconductor operations. In the course of frequent visits by Motorola's executives to Crolles over the last several months, the two were reportedly engaged in a number of exploratory meetings.

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