Siemens to spin-off Osram

German conglomerate Siemens is spinning off its lighting group Osram with an initial public offering of shares later this year.

Siemens Chief Executive Peter Loescher said selling just over 50 percent of Osram will free up capital and allow it to tap into a growing green energy market.

Once it is a stand alone company, the plan is for Osram to expand through takeovers and alliances.

The move is part of a reorganisation of Siemens, Europe’s biggest engineering company.

Osram is the second largest global lighting company after Philips. Analysts said they expect it to target more lighting and fixtures manufacturers in Europe, where many companies are only active in parts of the market or in a limited number of countries.

Siemens’ chief financial officer Joe Kaeser said they are looking to complete the flotation of Osram in the latter part of 2011 and will remain a major long-term shareholder.

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