Although Sharp is one of Samsung's smallest suppliers, its importance to the Korean company will likely grow as demand for large-screen TVs over 60 inches burgeons, analysts say. Preferential pricing could improve Samsung's competitive edge in TVs.

The deal could also niggle Apple by soaking up capacity at a plant that makes iPad and iPhone 5 screens. Analysts and industry researchers estimate that Sharp is Apple's second-biggest supplier after LG Display Co Ltd.

"An investment by Samsung will also prevent Apple from having exclusive access to Sharp," said Jeff Kang, an analyst at Daishin Securities in Seoul.

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