Wires

ST-Ericsson parents say working with external advisor on strategy

STOCKHOLM, Oct 9 (Reuters) - ST-Ericsson's owners Ericsson

and STMicroelectronics are working with anexternal advisor on the future strategy of the loss-makingchip-maker, they said on Tuesday.

The comments follow media reports that STM and Ericsson hadengaged U.S. investment bank JP Morgan to review all strategicoptions, including the search for a new partner or the sale ofsome assets.

"The two parent companies, together with ST-Ericsson, arecurrently working with an external advisor in order to ensurethe best possible future for ST-Ericsson," the companies said ina statement.

Ericsson and STMicroelectronics said they supportedST-Ericsson in its ongoing cost cutting programme.

(Reporting by Simon Johnson)

((simon.c.johnson@thomsonreuters.com)(+46 8 700 1045)(ReutersMessaging: simon.c.johnson.reuters.com@reuters.net))

Keywords: ERICSSON/