Philips Electronics announced that it has sold 46.4 million shares of common stock in LG.Philips LCD Co. Ltd. (LPL) to financial institutions in a capital markets transaction.

The transaction represents 13 percent of LPL's issued share capital, and reduces Philips' holding to 19.9 percent. Philips has been involved in LPL since 1999, when it spent $1.6 billion to buy a 50 percent share in LG Electronics' LCD business.

The deal, which closed today, will provide Philips with net proceeds of about $2.18 billion (1.55 billion Euros) and is expected to result in a non-taxable gain of approximately $705 million (500 million Euros) in Q4 of this year. Philips said in a statement that it may decide to sell additional shares to the same financial institutions later today "to meet additional demand, if any."

By: DocMemory
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