STMicroelectronics NV, the Franco-Italian semiconductor manufacturer, said Tuesday that it will sell about $2.6bn worth of stock and debt securities in a global offering that will open a majority interest in the company to the public. Of a total 28.6 million shares of common stock, 2.6 million will be newly issued by the company and 26 million will be sold by STMicroelectronics Holding II BV – the agent of the French and Italian government shareholders. In addition, ST and ST Holding will also grant the underwriters the right to buy up to an additional 390,000 newly issued shares and 3.9 million existing shares, respectively, to cover over-allotments.
The company will also offer 10-year notes convertible into roughly 7 million shares of common stock, with an over-allotment option of a further 1.05 million shares. ST Micro said it intends to apply for listing for the notes on the New York Stock Exchange and the Paris Bourse. The offering is expected to close in mid- September and after the sale, the combined French and Italian government stake will be reduced from the current 56% to about 42%. The share offering will be handled by Credit Suisse First Boston, Lehman Brothers and Morgan Stanley Dean Witter, while the sale of the notes will be solely managed by Merrill Lynch International.
