Philips May Sell Stake in LG Philips LCD JV
By Colleen Taylor -- EDN, August 17, 2006
Royal Philips Electronics NV is looking for an out from its joint venture with LG Electronics: The company is shopping around its 33 percent stake in LG Philips LCD Co. to various companies and private-equity groups, according to online reports.
The stake is worth $5 billion, say reports citing a Merrill Lynch internal note to clients. Matsushita Electric Industrial Co. of Japan is reportedly showing strong interest in buying the stake.
Philips has already streamlined its company significantly as of late and a further sale would come as no surprise. Earlier this month, the company signed an agreement to sell the majority stake in its semiconductor division for more than $10 billion. With that sale, Philips made it clear that that the company’s plan was to focus on its healthcare and lifestyle lines.
Philips' stock registered the LG Philips LCD rumors today, with the company's stock up nearly 1 percent after the reports surfaced. Shares opened this morning at $33.76, slightly up from last night's closing at $33.55. the company’s stock price has hovered around $34 since the opening bell.
A rep for Philips had no comment on the matter, and would give no further information on when the company would respond to the rumors.
Merrill Lynch could not be reached for comment.
