Ericsson to take $1.2 billion charge on ST-Ericsson stake
US-ERICSSON:Ericsson to take $1.2 billion charge on ST-Ericsson stake
STOCKHOLM (Reuters) - Ericsson will take an 8 billion crown ($1.22 billion) charge in the fourth quarter related to its loss-making joint venture ST-Ericsson, the world's top mobile network maker said on Thursday.
"The charge includes write down of assets to reflect the current best estimate of Ericsson's share of the fair market value of the JV, as well as additional charges related to the available strategic options for the future of the ST-Ericsson assets," Ericsson said in a statement.
Ericsson said it was exploring strategic options for chip-maker ST-Ericsson, but that it would not acquire the remainder of the company from STMicro which has already announced it will exit the 50-50 joint venture.
ST-Ericsson will need around 3 billion crowns of additional funding from Ericsson, mostly coming in 2013, Ericsson said. ($1 = 6.5388 Swedish crowns)
(Reporting by Simon Johnson)