* Siemens says fair value of Osram is about 3.2 bln euros
* Valuation at a discount to lighting peers
* Osram Q2 EBITA margin 7 pct, aims for more than 8 pct (Adds details on profit margin, valuation)
FRANKFURT, May 2 German engineering group Siemens aims to float its lighting business Osram on the stock exchange in early July, it said on Thursday, following a short delay due to legal action by a handful of investors.
Siemens, which is floating Osram to focus on its most profitable businesses, had planned to spin off 80.5 percent of the business in the European spring.
However, legal action by a handful investors, who complained about acoustic problems during the meeting at which the spin-off was approved, pushed back the timetable. A Munich court ruling last month cleared the path for the listing.
Siemens said on Thursday the "fair value" of Osram was about 3.2 billion euros ($4.3 billion).
That gives Osram, the world's No. 2 player in the 73-billion-euro lighting industry after Philips, a valuation of around nine times estimated 2013 operating profit - a discount to an average valuation of lighting peers such as Philips and Zumtobel of close to 15.
Osram is in the midst of restructuring, having been slow to adjust to a shift in demand from traditional light bulbs to LEDs, which now account for about a quarter of its 5.4 billion euros of annual revenues.
LEDs, best known for their use in flat-screen televisions and tablet PCs, are becoming increasingly popular as a source of general lighting in shops and restaurants, for outdoor displays, and for headlights in cars.
Consultancy McKinsey has estimated the LED market will grow more than sevenfold to almost 65 billion euros by 2020, accounting for the bulk of global demand for lighting.
Osram announced plans late last year to cut another 4,700 jobs, or 12 percent of its workforce, and sell factories to save about 1 billion euros and catch up with its rivals once it has been spun off. Siemens said on Thursday that 5,000 of a total planned 8,000 job cuts have been completed so far.
Siemens finance chief Joe Kaeser said Osram's earnings before interest, tax and amortisation (EBITA) came to 7 percent of sales in the fiscal second quarter, excluding one-off items. That is still behind the 8.4 percent margin that Philips Lighting posted during the quarter.
Osram aims to lift its margin above 8 percent from 2015 onwards.
($1 = 0.7580 euros) (Reporting by Maria Sheahan; Editing by Christoph Steitz and Mark Potter)