Philips shares fall as it considers lighting unit IPO

Philips shares slumped the most in eight months on prospects the Dutch manufacturer will sell its lighting division through an initial public offering, earning less than a private sale, which has so far been unsuccessful. 

An improvement in stock market conditions during the past couple of months means an IPO “increasingly appears a more likely outcome,” Philips said in an earnings statement, adding that a decision will be made shortly after a conclusion has been reached on all proposals in the alternative sale process.

“The potential of an IPO would result in lower expectations about the proceeds,” Actiam portfolio manager Corne van Zeijl said.