UPDATE 1-LG Display eyes 30 pct of Taiwan's Amtran-paper

(Adds details, LG Display comments)

TAIPEI/SEOUL, March 21 (Reuters) - LG Display (034220.KS: Quote, Profile, Research, Stock Buzz) is considering buying 30 percent of Taiwan's Amtran Technology (2489.TW: Quote, Profile, Research, Stock Buzz) or forming a tie-up with the Vizio brand LCD TV maker, a newspaper said on Friday citing market talk.

The two companies are in discussions now and they have not yet finalised the deal, Taiwan's Chinese-language Economic Daily News reported, without giving further details.

A 30 percent stake in Amtran is worth about $144 million on the market, Reuters calculations show.

Amtran shares surged by the daily 7 percent limit to T$27.6 after the report, outpacing a 2.14 percent gain on Taiwan's main TAIEX index at 0300 GMT. LG Display was up 0.33 percent to 45,650 won, lagging the KOSPI's 0.92 percent rise.

A tie-up, if materialised, could help Amtran secure panels for its hot-selling flat-screen televisions and give LG Display a strong client relation it can rely on in the event the industry hits a downturn.

LG Display, the world's No. 2 maker of large-sized liquid crystal display (LCD) panels, declined to comment.

The company, formerly LG.Philips LCD, previously said it was in strategic alliance talks with "one or two" TV set makers.

"We don't comment on rumours or rumour-based reports," said Kim Chang-dong, a company spokesman, adding: "LG Display is considering various possibilities for strategic alliances."