Chi Mei and Innolux in $1 bln share-swap merger

TAIPEI, Nov 14 (Reuters) - Chi Mei (3009.TW), Taiwan's No.2 LCD maker, agreed to merge with Innolux (3481.TW) through a share swap worth about T$35 billion ($1.1 billion) to get a stronger foothold in the LCD industry, the companies said on Saturday.

Under the tie-up, both companies have agreed that 2.05 Chi Mei shares will be exchanged for one Innolux share, Innolux will be left as the surviving company and the new company will be named Chimei Innolux Corp, the companies said. (US$1=T$32.3) (Reporting by Roger Tung and Baker Li, Editing by Ron Popeski)