LG.Philips LCD world's biggest LCD screen producer, Samsung #2
LG.Philips to invest $ 2.6 B for new capacity, may launch IPO:
biz.yahoo.com
AMSTERDAM, April 8 (Reuters) - LG.Philips LCD, the world's largest producer of liquid crystal display screens, has selected investment banks to explore how to fund its $2.6 billion expansion plans, sources close to the talks said on Tuesday.
Sources said an initial public offering (IPO) was among the options being considered, but that if decided upon, it would not go ahead before the fourth quarter of this year.
South Korean-based LG.Philips LCD, a 50/50 joint venture between South Korea's LG Corp (KSE:03550.KS - News) and Netherlands-based Philips Electronics (Amsterdam:PHG.AS - News), said it had not yet taken any decisions about funding.
"We've taken no decision as regards to the financing requirements," a Philips spokesman said, adding that the firm was talking to "a number of banks".
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If the IPO went ahead, it would be one of the largest initial technology offerings in recent years.
A financial magazine, FinanceAsia, said on its Web site the firm was planning to raise $1 billion but sources denied that LG.Philips had already decided on an IPO.
LG.Philips in February unveiled a $2.6 billion investment plan to add a new production line for flat panel displays used for computer monitors and televisions as part of its efforts to remain ahead of South Korea's Samsung Electronics Co Ltd (KSE:05930.KS - News) and Taiwanese competitors.
LG.Philips LCD overtook Samsung as the world's largest liquid crystal display maker in the fourth quarter of 2002, according to DisplaySearch, the sector's leading research company.
LG.Philips LCD had a 19.2 percent global market share, compared with Samsung's 17.1 percent.
Falling prices on a supply glut have hit flat panel display manufacturers since late last year but analysts say the sector may be bottoming out as replacement demand is expected to pick up in the first quarter of the year. (Additional reporting by Sophy Tonder and Tom Bergin in London)
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