AMSTERDAM (Thomson Financial) - Royal Philips Electronics NV has declined to
comment on reports that it will sell today 1.1 bln usd in shares of LG Display,
formerly known as LG Philips LCD.
Dutch media reports indicated that Philips plans to sell 23 mln shares or a
6.32 pct stake of LG Display.
The reports said the shares would be sold with a discount of 4.8-8.1 pct to
Tuesday's closing share price.
In October, Philips reduced its stake in LG Philips LCD to 19.9 pct as it
sold a 13 pct stake in the company.
Philips has previously said it will reduce its stake in LG Display, adding
that it may also opt to retain a minority stake in the business.
Philips spokesman Joon Knapen said the sale of the company's stake in LG
Display is part of the 20 bln eur capital reallocation programme Philips has
embarked on in recent years, with half to be spent on acquisitions and the other
half on dividends and buybacks.
Accordingly, a 5 bln eur share buyback was announced last December, while
Philips is also using the capital reallocation to help fund its 5.1 bln usd
acquisition of Respironics Inc, a deal which Philips expects to close in the
first quarter.
"The capital reallocation programme is ongoing," Knapen said, adding that
Philips is already in a different position compared with 2007 when it had "lots
of money" on its balance sheet.
Aaron Gray-Block; aaron.gray-block@thomson.com
agb/lht
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