STET CONFIRMS TALKS UNDER WAY WITH THOMSON
Italy's state-controlled
telecommunications company <Stet - Societa Finanziaria
Telfonica P.A.> and France's Thomson-CSF <TCSF.PA> said they
were negotiating a deal involving their respective subsidiaries
<SGS Microelettronica SpA> and <Thomson Semiconducteurs>.
    The deal in question was in the civil semiconductor sector,
the companies said in a joint statement, but gave no details.
    The final agreement would be submitted for approval to the
French and Italian authorities, they added. The statement
follows recent press speculation that the two companies were
holding talks aimed at a long-term agreement.
 REUTER
