Philips Electronics NV's semiconductor division is close to being snatched up, according to a Wall Street Journal report. The report quoted three people familiar with the situation as saying that groups of private-equity firms are in the final stage of bidding more than $10.2 billion for the division.

The Amsterdam-based Philips put the division up for sale last year so it could focus on its core consumer-products, lighting and medical-equipment businesses. The company said last month it would pursue an initial public offering of shares in the semiconductor division, but also began accepting bids from potential buyers, almost all private-equity firms.

The bidders include the world's largest private-equity firms and some specialist-technology investors. Kohlberg Kravis Roberts & Co. of New York has teamed up with Silver Lake Partners of Menlo Park, Calif.; Permira Advisors of London is bidding with Texas Pacific Group of Fort Worth, Texas, and Blackstone Group of New York; and Bain Capital Inc. of Boston has joined with Apax Partners Worldwide LLC of London and Francisco Partners Management LLC of Menlo Park, Calif., according to people involved in the bidding.

The business unit employs more than 36,000 people and makes chips in five European countries in addition to the U.S., Singapore, Hong Kong and Taiwan. The company will make a decision after all bids are received at the end of the week.

By: DocMemory
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