Philips to sell LG.Philips LCD stake

23rd May 2007, Comments 0 comments

23 May 2007, AMSTERDAM (AP) - Royal Philips Electronics NV is in talks to sell its 33 percent stake in flat panel display maker LG.Philips LCD, Dow Jones Newswires reported Tuesday, a move that could bring it EUR 3.7 billion (US$5 billion) in proceeds.

23 May 2007

AMSTERDAM (AP) - Royal Philips Electronics NV is in talks to sell its 33 percent stake in flat panel display maker LG.Philips LCD, Dow Jones Newswires reported Tuesday, a move that could bring it EUR 3.7 billion (US$5 billion) in proceeds.

Dow Jones cited CEO Gerard Kleisterlee, who was speaking at the Electrical Products Group Conference in Florida.

Kleisterlee said Amsterdam-based Philips was in talks with "LG.Philips and other parties," on the disposal, without elaborating.

Philips' has a lockup period on its stake that ends in July and has said in the past it intends to sell.

LG.Philips has a market capitalization of roughly EUR 11 billion (US$15 billion).

The Seoul, South Korea-based company has been plagued by oversupply in the market for liquid crystal displays, and is one target of an investigation into anticompetitive practices in the industry by U.S. and Asian regulators. But an industry group said last week that there are signs prices for the displays have stabilized or are rising.

LG.Philips posted a first quarter net loss of US$180 million (EUR 133 million), tightening from a loss of US$185 million a year earlier. Sales fell 11 percent to US$2.89 billion (EUR 2.14 billion).

In Amsterdam, Philips' shares rose 0.4 percent to EUR 30.63 (US$41.32).

Before Kleisterlee spoke, the company released a statement reiterating its financial targets for 2007.

[Copyright AP 2007]

Subject: Dutch news

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