Corning Shares Soar on Samsung Deal

by Christopher Freeburn | October 23, 2013 9:49 am

tablets Corning Shares Soar on Samsung Deal[1]Shares of Corning (GLW[2]) jumped more than 15% in Wednesday morning trading after it announced an expanded alliance with a global consumer electronics giant[3].

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[4]) iPads and Sony (SNE[5]) TV sets.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2012/11/tablets.jpg
  2. GLW: http://studio-5.financialcontent.com/investplace/quote?Symbol=GLW
  3. announced an expanded alliance with a global consumer electronics giant: http://in.reuters.com/article/2013/10/23/corning-jv-samsung-idINL3N0ID03T20131023
  4. AAPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAPL
  5. SNE: http://studio-5.financialcontent.com/investplace/quote?Symbol=SNE

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