Panel prices fell two parent holdings of LG.Philips shares

South Korea announced LCD display manufacturers LG.Philips day before LCD, because the two parent company plans to reduce its stake in the joint venture, it may sell about 26 million 850 thousand shares of common stock of the original.

LG.Philips submitted to the U.S. Securities and Exchange Commission applications including PHILPS (Philips Electronics) by American Depositary Receipts (ADS) in the form of the sale of 6 million 710 thousand shares of secondary stock per unit, representing 0.5 ordinary shares of ADS. Recent media reports suggest that Philips Electronics is preparing to reduce its stake in LG.Philips. As with other panel suppliers, LG.Philips sales and profit growth have been sluggish in recent quarters due to the decline in panel prices. LG Electronics Inc. (LGE) is also considering the sale of its stake held by LG.Philips.

PHILPS and LGE are going to sell the same amount of equity, so that their holdings of LG.Philips LCD shares after the sale of shares in the same.

LG.Philips announced in April, will issue $400 million zero coupon convertible bonds, financing and capital expansion plans for the future. The company said the proceeds from the sale of equity will also be used for capital expansion.

LG.Philips LCD is currently building a seventh generation factory production for large flat-panel TV panel.