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Wednesday, November 12, 2014

Philips attracts private equity bids for lighting unit - sources, (NYSE: MS)

Dutch electronics group Philips has attracted offers from several private equity groups for the majority of its lighting components business, up for sale as it focuses on higher-margin activities, several sources said on Wednesday. Buyout groups including Bain, CVC, CD&R, KKR and Onex handed in indicative offers earlier this week valuing the business at between 2.5 billion euros ($3.1 billion) and 3 billion, the sources said.The medical electronics-to-coffee machines group, which started making light bulbs 123 years ago, is splitting off its lighting business, whose earnings have been squeezed in a price war in light-emitting diodes (LEDs) kindled by Chinese rivals.Separately and ahead of a potential spin-off of the division, it has combined its so called Lumileds and its car lights division into a stand-alone company and has mandated Morgan Stanley to find a buyer for the business, with 1.4 billion euros in sales.Philips has said the lighting components business would be better placed to compete on a standalone basis for outside customers, which currently regard Philips as a rival. It intends to hold onto a minority stake, however, as about a fifth of Lumileds's sales of 500 million are made to the parent.

Morgan Stanley is a global financial services company that, through its subsidiaries and affiliates, provides its products and services to a range of clients and customers, including corporations, governments, financial institutions and individuals. Shares of MS remained unchanged at $35.79. In the past year, the shares have traded as low as $28.31 and as high as $36.44. On average, 9840070 shares of MS exchange hands on a given day and today's volume is recorded at 1800307.