PHG: Philips Electronics N.V. $10.2 Billion Bid For Semiconductor Unit

Three private equity groups have made a $10.2 billion bid for the semiconductor unit of the electronics firm.

The company said 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.

Philips will decide which course it will take for the unit -- which employs more than 36,000 people and makes chips in five European countries in addition to the U.S., Singapore, Hong Kong and Taiwan -- after the final round of bids are submitted by the end of the week, these people said.

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, California; 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, California, according to people involved in the bidding.