IMO the Phillips deal isn't all that bad considering they sold 80% of their semiconductor unit. It looks like NXP will be infringing on the MMP as well.

Friday, September 29, 2006

Amsterdam, The Netherlands - Royal Philips Electronics (NYSE:PHG, AEX:PHI) announced today that it has completed its sale of an 80.1% stake in its Semiconductors business to a private equity consortium consisting of Kohlberg Kravis Roberts & Co. (KKR), Silver Lake Partners, Bain Capital, Apax Partners and AlpInvest Partners NV. Under the terms of the agreement, which was announced on August 3, 2006, Philips sold an 80.1% stake in its Semiconductors business, and estimates that, after subsequent payment of taxes, it will receive approximately EUR 6.4 billion in cash. This transaction puts the enterprise value of the entire stand-alone semiconductors company - now known as NXP - at approximately EUR 8.3 billion.

With the completion of the transaction, Mr. Frans van Houten, President and CEO of NXP, relinquishes his position as member of the Board of Royal Philips Electronics. As a result of the transaction, Philips will treat its Semiconductors activities as "Discontinued Operations" in the company's financial reporting as of Philips' 2006 Third Quarterly Report, to be published on October 16, 2006