Matsushita, Canon, Hitachi form display tie-up

TOKYO, Dec 25 (Reuters) - Japanese electronics makers Matsushita Electric Industrial Co (6752.T: Quote, Profile, Research, Stock Buzz), Hitachi Ltd (6501.T: Quote, Profile, Research, Stock Buzz), and Canon Inc (7751.T: Quote, Profile, Research, Stock Buzz) announced an alliance in flat panel displays on Tuesday.

Under the pact, Matsushita and Canon will each take a 24.9 percent stake in Hitachi Displays Ltd, a wholly owned unit of Hitachi that makes liquid crystal displays and is developing a new type of display using organic light-emitting diode (OLED) technology.

Matsushita will also take a controlling stake in IPS Alpha Technology, an LCD joint venture between Toshiba Corp (6502.T: Quote, Profile, Research, Stock Buzz), Hitachi and Matsushita, which until now has focused its investment on plasma display technology for flat TVs.

Hitachi's stake in Hitachi Displays will fall to 50.2 percent, the companies said in a joint statement. (Reporting by Nathan Layne)