UPDATE 1-Samsung, Sony likely to spend $1.9 bln on LCD-source

(Adds Pioneer, share prices)

By Rhee So-eui

SEOUL, March 4 (Reuters) - Samsung Electronics Co Ltd (005930.KS: Quote, Profile, Research, Stock Buzz) and Sony Corp (6758.T: Quote, Profile, Research, Stock Buzz) are likely to invest about $1.9 billion jointly in a new flat screen production line, a source at Samsung said on Tuesday.

The comment is the latest in a series of announcements from panel makers and sellers, underlining the robust outlook for liquid crystal displays (LCDs) as demand for sleek, stylish and increasingly inexpensive television sets rises.

Last week, Japan's Sony said it would take a one-third stake in Sharp Corp's (6753.T: Quote, Profile, Research, Stock Buzz) planned $3.5 billion LCD plant.

The following day a source at Sony's South Korean LCD partner Samsung said the two firms were in the final stages of talks to jointly build a new LCD production line, soothing concerns that their alliance was in jeopardy.

"Negotiations are in the final stage and will be wrapped up soon," the Samsung source, who declined to be identified because he was not authorised to speak to the media, said on Tuesday.

"The investment size will be about that much," the source said, when asked about an earlier Nikkei business daily report saying the two were set to invest about 200 billion yen ($1.9 billion).

Sony is diversifying its panel suppliers in a bid to surpass Samsung, the world's top maker of LCD TVs in 2007.