STM Wireless Shares Rise 24% on News of Subsidiary’s Sale

STM Wireless Inc.’s shares rose 24% after the communications equipment maker agreed earlier this week to sell its RF Microsystems subsidiary.

“They are getting rid of a unit that was diverting management’s attention,” said Dale Pfau, analyst with Oppenheimer & Co. “This company is on its way to a turnaround.”

The company’s shares rose by $2.50 to $12.75 on the Nasdaq market.

STM had announced earlier this week that it plans to sell the subsidiary to Remec Inc., as well as various microwave design and manufacturing systems. Terms weren’t disclosed.