Philips to sell semiconductor division to three PVCs

A GROUP of three private equity firms are close to paying $10.2 billion for the semiconductor division of Philips Electronics. The division was put up sale in 2005 so the company could focus on its consumer products, lighting and its medical equipment businesses.

Philips had originally said it would pursue an IPO for the semiconductor division but then began looking at bids from potential buyers, almost all of them PVCs.

The division makes chips in five European countries plus the USA, Singapore, Hong Kong and Taiwan and employs over 36,000 people.

Philips said it will decide which course it will take for the division after the final round of bids are submitted by the end of this week. µ

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