Japan's Toshiba plans to take a 100% stake in its struggling LCD joint venture with Panasonic, a source with knowledge of the matter said. Toshiba Matsushita Display Technology, currently owned 60 percent by Toshiba and 40 percent by Panasonic, is the world's second-largest maker of small and midsized LCD panels used in cell phones, car navigation systems and other devices.

Dongbu HiTek, the group's chip making affiliate, may supply its latest flat-screen driver chip for Japan's Panasonic and NEC.

Panasonic, the world's largest consumer electronics maker, forecast its largest loss in seven years because of falling sales of flat-screen televisions and a stronger yen. The net loss will probably be 380 billion yen (US$4.24 billion) in the year ending March 31, compared with the 30 billion yen profit projection made on November 27.

Panasonic is moving to acquire Sanyo Electric after squabbling Sanyo shareholders agreed to a plan whereby the smaller electronics company will be acquired for around US$9 billion. US investment powerhouse Goldman Sachs agreed to participate in the deal for a price per share of 131 yen (US$1.47) after it had rejected an earlier price of 130 yen.

Goldman Sachs Group said Thursday it rejected a new offer from Panasonic for its near-30% stake in Sanyo Electric, as the first major attempt at consolidation in Japan's crowded consumer electronics sector turns increasingly sour.

The US bank called off talks with Panasonic on a sale of its stake in the Japanese electronics maker, unhappy with Panasonic's bid.