by Christopher Freeburn | October 23, 2013 9:49 am
Shares of Corning (GLW) jumped more than 15% in Wednesday morning trading after it announced an expanded alliance with a global consumer electronics giant.
Under the terms of the deal, Corning will acquire Samsung’s share of a joint venture that produces glass for LCD (liquid crystal display) panels. Samsung’s display unit will receive $1.9 billion in convertible preferred Corning shares, and will pay $400 million to purchase more convertible preferred shares, Reuters notes.
Samsung Display will become Corning’s largest shareholder if it ultimately converts all the shares into a 7.4% stake in the company.
Corning will also benefit from a 10-year agreement to provide glass for LCD panels from Samsung Display, which are used in popular mobile devices, including Samsung’s Galaxy smartphones and tablets, Apple’s (AAPL) iPads and Sony (SNE) TV sets.
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