STMicroelectronics (NYSE:STM) Brushes of “Company Split” Report as Rumor

According to Bloomberg News, Switzerland-based STMicroelectronics N.V will be segregated into two, as per unnamed sources involved in the matter. This company is the biggest chipmaker in Europe and as per the report; the business of making analog chips and sensors for cars, smartphones and other gadgets would be separated from the section that deals with the digital chipmaking business that supplies phone makers as well.

However, STMicroelectronics completely denies the report stating that it would never indulge in ventures that would affect the company’s unity. The analog business has been performing well due to a steady demand for products like motion sensors in iPhones that are used to make out if the phone is being held vertically or horizontally. On the other hand, the digital side does not look too promising after losing clients like Nokia and Research In Motion.

Regardless of the fact that the news might be just a rumor, U.S. traded shares of STMicroelectronics shot up 36 cents, or 6.50% at $6.06 in afternoon trading. Paris showed better results in earlier trading, with shares moving up by 19% and finally wrapping up at 6.4%.