27 March 2003 12:00am

ERG Group yesterday revealed STMicroelectronics as the purchaser of Proton World International, with the sale of the Belgian-based developer of smart card applications and operating systems set to occur some time in April.

But ERG a distressed vendor played a weak hand in the negotiations with STM, a Geneva-based manufacturer of silicon chips.

So STM will buy Proton World for only €37 million. Three weeks ago, ERG said that it expected to sell Proton World for €60 million.

ERG may also earn what it described at milestone fees worth €22.5 million over 10...