In an effort to focus on the more profitable line of business, Siemens is set to spin-off its lighting arm Osram. Siemens says that it plans to offer more than 80% of Osram which is valued at more 3 billion euros. But there are some fears that the company would be at high risk at its debut.
Companies which are scheduled to go public are required to tell potential investors about the possible risks involved. It was revealed that institutional shareholders of the company would try to find a way out after the offering.
Osram is the second biggest company in the lighting industry. Only Phillips is bigger in that field. Investors are set to get one Osram share for every ten Siemens shares that they own. The warning given out by the company is likely to hurt its debut as investors might be reluctant do anything with it initially.
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