James Delahunty
23 May 2007 19:34
According to reports on Tuesday, Royal Philips Electronics NV is currently in talks to sell its stake (33%) in flat-panel display maker LG.Philips. The move could bring the company €3.7 billion (US$5 billion) in proceeds. The company has faced oversupply in the market for LCD and is also being investigated by U.S. and Asian regulators for anticompetitive practices.
Gerard Kleisterlee, President and Chief Executive Officer (CEO) of Philips was quoted as saying the company was in talks with "LG.Philips and other parties," on the disposal. Philips' lockup period on its stake ends in July, and the company has revealed plans to sell in the past. LG.Philips has a market capitalization of roughly €11 billion (US$15 billion).
LG.Philips posted a first quarter net loss of US$180 million (€133 million), tightening from a loss of US$185 million a year earlier.
Source:
Expatica