Philips May Sell LG.Philips LCD Stake
Royal Philips Electronics is in talks to sell its 33% stake in flat panel display maker LG.Philips LCD, which may bring in $5 billion (3.7 billion euros).
Dow Jones Newswires 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," 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 $15 billion (11 billion euros).
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 $180 million (133 million euros), tightening from a loss of $185 million a year earlier. Sales fell 11% to $2.89 billion (2.14 billion euros).
In Amsterdam, Philips' shares rose 0.4% to 30.63 euros ($41.32) at close.
Before Kleisterlee spoke, the company released a statement reiterating its financial targets for 2007.