STMicroelectronics to Acquire Alcatel Microelectronics Business

GENEVA, April 16 -- STMicroelectronics will acquire Alcatel's Microelectronics activities for Euro 390 million.

As part of their recent agreement, the two companies said they will jointly develop DSL chip sets that will also be made available to the open market. The new agreement also calls for STMicroelectronics to become a preferred supplier of Alcatel, expanding their longstanding strategic alliance.

This cooperation also complements the companies' recent agreement to jointly develop GSM/GPRS chipsets for mobile phones and other wireless connectivity applications.