Philips to Sell Most of LG.Philips Stake: The Nikkei

Philips Electronics plans to sell most of its stake in flat screen maker LG.Philips LCD as early as this year, the Nikkei business daily reported on Wednesday, quoting the president of Philips.

Philips said in October that it had reduced its stake in LG.Philips to 19.9 percent from 33 percent, and investors have been waiting to see what it would do with its remaining stake, which is worth about $3 billion at the current market price.

LG.Philips is a liquid crystal display (LCD) venture with LG Electronics.

The Nikkei quoted Philips President Gerard Kleisterlee as saying in a recent interview that the electronics maker would look to sell shares soon after the stock market recovers, noting that the panel business was not one of its core operations.

Philips is now considering holding on to just a 2-3 percent stake in LG.Philips LCD and selling the rest, the Nikkei said.

LG.Philips, the world's No. 2 LCD maker, said earlier this month that it was in strategic alliance talks with one or two TV set makers, eyeing stronger ties with clients for its panels.