Philips Sell 24 Million Shares of LG Display

Market Intelligence Center: On April 4, 2008, LG Display Co. Ltd. (LPL) announced that Royal Philips Electronics NV sold 24 million shares, reducing its equity share to 13.2%, down from 19.91%.

Does Philips know something or is the selloff just a part of its long-term strategy to divest itself of high-tech manufacturing?

With weak global demand CYQ1’08 expectations are low and there are growing downward price pressures for LCD TV panels that may result in depressed revenues for LCD manufactures. LCD TV panels have been the main source of tremendous growth for LCD manufacturers in the last 2-3 years.

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