12th Jan 2016 12:19
LONDON (Alliance News) - Industrial group Melrose Industries PLC is examining making a bid for the lighting arm of Koninklijke Philips NV, the Dutch conglomerate, Sky News reported.
Sky said Melrose is considering joining an auction of the business, which has attracted the interest of a number of major buyout funds. Melrose operates a "buy, improve, sell" model not dissimilar from a private equity investor, under which it acquires underperforming companies, returns them to health and then sells them on.
One source close to the process told Sky that though Melrose was examining a bid for the lighting company, which could fetch up to GBP4.0 billion, its aversion to using the high levels of debt most private equity bidders would employ meant the likelihood of its succeeding was not as high as normal.
http://news.sky.com/story/1621309/melrose-eyes-4bn-bid-for-philips-lighting
By Sam Unsted; [email protected]; @SamUAtAlliance
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