LG.Philips LCD to change name,board members-source

SEOUL, Feb 5 (Reuters) - LG.Philips LCD Co Ltd (034220.KS: Quote, Profile, Research, Stock Buzz) is planning to change its name and reshuffle its board as LG Electronics Inc (066570.KS: Quote, Profile, Research, Stock Buzz) takes a leading role after stake sales by joint venture partner Philips (PHG.AS: Quote, Profile, Research, Stock Buzz), a company source said on Tuesday.

Expectations for the new LG-led management helped shares in the world's No. 2 maker of large LCD screens jump as much as 5.46 percent. By 0335 GMT, the stock was trading up 3.6 percent at 40,800 won, against the wider market's 0.37 percent loss.

LG.Philips was expected to drop Philips from its name and appoint a new chief financial officer and vice president representing LG Electronics, a company source close to the matter said.

The changes will be approved at the company's upcoming shareholder meeting on Feb. 29.

The source was unable to confirm domestic reports that the new name would be LG LCD.

Ron Wirahadiraksa, current CFO who also shares the president's role with CEO Kwon Young-soo, will step down. Dutch company Philips will still have one seat in the LG.Philips board.

"The change can speed up decision-making at LG.Philips," said Bae Seung-chul, an analyst at Samsung Securities. "Philips focused on risk management as it was planning an exit."

However, there is a risk if the business relationship weakens with Philips, a major client for liquid crystal display (LCD) panels, Bae noted.

LG Electronics and Philips Electronics, Europe's biggest consumer electronics maker, set up LG.Philips LCD in 1999 and went for an initial public offering of the 50/50 venture in 2004.

Philips cut its stake to 19.9 percent in share sales, the last of which was in October, while LG Electronics still holds 37.9 percent. (Reporting by Rhee So-eui; Editing by Keiron Henderson)