Philips to work with Bank of Amer­ica on med­i­cal deals

The Pak Banker - - COMPANIES/BOSS -

Royal Philips NV is work­ing with Bank of Amer­ica Corp. as it scouts for ac­qui­si­tions in med­i­cal de­vices to ex­pand its health-care di­vi­sion, ac­cord­ing to peo­ple with knowl­edge of the mat­ter.

While the process is pre­lim­i­nary and no spe­cific tar­gets have been iden­ti­fied, Philips would con­sider smaller ac­qui­si­tions as well as multi­bil­lioneuro deals over the next six to 12 months, said the peo­ple, who asked not to be iden­ti­fied be­cause the plans are pri­vate. Shares of Elekta AB, a Swedish de­vice maker, surged the most in more than five years on spec­u­la­tion that it might be a tar­get.

The bud­get for pur­chases may in­crease depend­ing on other po­ten­tial as­set dis­pos­als, the peo­ple said. The com­pany also could use the pro­ceeds from an ini­tial public of­fer­ing or sale of its light­ing di­vi­sion. Philips is re­view­ing op­tions for that busi­ness, which it plans to sell as soon as next year. Philips is eye­ing med­i­cal-de­vice com­pa­nies in ar­eas such as ra­dio­ther­apy, imag­ing and home care both in the U.S. and in Europe, the peo­ple said.

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