LG Electronics on Wednesday denied rumors that U.S. search giant Google was mulling to acquire a 35 percent stake, worth 2.5 trillion won ($2.2 billion), in the company.
According to the rumors, Google would acquire the stake in a block deal, but would not participate in the management despite becoming the largest shareholder.
Inspite of the company’s denial, LG’s share price soared 14 percent in the morning. The closing price was 43,650 won, up 3.07 percent from the previous day.
The share price had been declining in recent weeks due to the company’s sluggish sales and uncertainties about its next growth momentum.
A possible layoff at the struggling mobile and TV business divisions was also rumored recently. But the company flatly denied it.
By Lee Ji-yoon (firstname.lastname@example.org)