Vivendi SA (VIV) and STMicroelectronics SA (STM), each considering a reorganization to boost their competitiveness, face a hurdle as French President Francois Hollande struggles to keep an election pledge on job creation.
Industry Minister Arnaud Montebourg is today hosting STMicroelectronics Chairman Didier Lombard at Bercy, the sprawling 1980’s government complex in eastern Paris. The meeting will emphasize strategic discussions as Europe’s biggest chipmaker evaluates options ranging from asset sales to a break- up, people with knowledge of the matter said, asking not to be named because the gathering is private. A government agenda showed that a separate meeting with Vivendi’s Jean-Rene Fourtou was scheduled.
With Vivendi and STMicroelectronics employing about 26,000 workers in France in total, the government would be interested in any potential job eliminations from a reorganization, said the people. Even as Hollande had campaigned on the promise of “social justice,” his government last month had to backtrack on its objection to the closure of a PSA Peugeot Citroen (UG) factory in France as auto demand slumped.
“The perception is that the first priority of the French government is to protect jobs,” said Claudio Aspesi, an analyst at Sanford Bernstein in London. In the case of Vivendi, “there’s a question of what the government can live with, and that could be a tough conversation.”…
French media and telecoms giant Vivendi has said it will cut costs, including jobs, as it reported a drop in second-quarter net profits mainly due to its struggling telecoms unit. Net profit fell 46% to 619m euros ($777m; £490m) on revenue down 1.5% to 6.96bn euros, a statement said. Vivendi said it would cut costs … Continue reading »
Chip maker ST-Ericsson will cut 1,700 jobs and shift a key part of its product to parent STMicro, forcing the French co-owner to focus more on its loss-making and volatile wireless business. ST-Ericsson said it would partner with STMicro to develop application processors, after failing to cut a deal with one of four other companies. … Continue reading »