China LCD companies say merger talks unsuccessful

SHANGHAI, Dec 29 (Reuters) - Major Chinese liquid crystal display makers said on Saturday that merger talks between them, designed to create a globally competitive panel-making giant, had been unsuccessful.

With encouragement from the government, SVA Electron Co (600602.SS), BOE Technology Group (000725.SZ) and the Longteng group have been discussing the possibility of a merger since early this year.

But SVA and BOE said in brief statements on Saturday that because of "technical obstacles", which they did not describe, the talks had not made progress and the merger could not take place.

The companies did not say if they would continue trying to reach agreement, and company spokesmen could not be reached for comment.

China's LCD makers have struggled because of tough competition and weak prices.

BOE posted a net loss of 173 million yuan ($23.7 million) in the first half of this year, though it said it hoped to make a profit for the full year. SVA recorded an operating loss of 240 million yuan in the first half.

However, the LCD sector has shown signs of a pick-up globally in recent months because of the popularity of slimmer LCD televisions.

Researcher iSuppli Corp forecast last month that global LCD TV panel shipments would rise 27 percent next year.

($1 = 7.30 yuan)

(Reporting by Andrew Torchia; editing by James Jukwey)

((andrew.torchia@reuters.com; (86) 1391-660-2505)) Keywords: CHINA LCD

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