Electronics Production | September 28, 2006
"STMicro next Chipmaker targeted for buyout"
According to traders betting on the creditworthiness of companies, STMicroelectronics may be the next chipmaker targeted for a buyout.
The perceived risk of owning STMicroelectronics' $1.6 billion of bonds has risen 29 percent in the past week to its highest in six months, Bloomberg reports. According to Olli Rouhiainen, an analyst at Standard & Poor "STM would be a bigger buyout than Freescale or NXP, but in this day and age any company can be bought, ratings will suffer when leverage rises.''