A sale for Europe’s No. 3 chipmaker could be forthcoming and another fast-food giant reportedly goes on the block this morning.
Europe’s largest consumer electronics company, Royal Philips Electronics NV, announced plans this morning to break its semiconductor business off into a separate legal company, a move that analysts say could position the unit for a listing, a merger or an acquisition.
The Amsterdam-based company’s chip unit is the third-largest in Europe and one that analysts say could be worth between $4 billion and $6 billion. Yet it has suffered losses this year as growth in the $235 billion semiconductor market has slowed. Earlier this year, Philips laid forth a restructuring plan to save the unit 250 million euros by year-end 2006.
A sale could decrease volatility for the company and enable the electronics group, which dabbles in everything from television manufacturing to designing electric razors, to focus on some of its higher-margin businesses like medical devices.
In other news, the No. 2 sandwich maker in the U.S., The Quiznos Master LLC, the parent of Quiznos sub shops, has put itself up for sale, according to published reports.
The Denver-based quick-service sandwich chain, which has more than 3,500 locations nationwide, could fetch as much as $2 billion, according to people familiar with the matter. Family-owned Quiznos, which is known for its oven-toasted submarine sandwiches, has reportedly hired Goldman Sachs & Co. to advise in a sale.
According to the New York Times, interest is expected to be high as the chain has an annual growth rate of nearly 30%, while its franchisees had more than $1.3 billion in sales last year.
The news comes just three days after French beverage group Pernod Ricard SA sold off its fast-food business, Dunkin’ Brands, Inc., which includes Dunkin’ Donuts, Baskin-Robbins and Togo shops, to a consortium of U.S. buyout shops, including Bain Capital LLC, Carlyle Group and Thomas H. Lee Partners, for just over $2.4 billion. — Carolyn Murphy
See story about Philips from Reuters
See story about Quiznos from New York Times
See story about Dunkin' Brands from The Deal
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