STMicroelectronics NV, Europe’s biggest semiconductor maker, may post a pre-tax gain of about $163 million after a ruling that Credit Suisse Group AG must pay to resolve claims it misled the company into buying auction-rate securities.
Credit Suisse must pay more than $400 million and will take back the securities from Geneva-based STMicroelectronics, according to a Financial Industry Regulatory Authority arbitration award announced Feb. 13. The total award was $431.8 million, including $25.2 million in interest already paid.
"Payments by Credit Suisse pursuant to the arbitration award will result in a further strengthening of ST’s financial position by increasing current liquidity by about $406 million," the company said in a statement today.
The gain should reverse impairment losses accrued in prior periods, the company said.
