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Breakingviews: No Philips quick fix

Tuesday, September 23, 2014 - 03:43

Philips may be splitting its 120-year old company into two, but its problems can't be solved by flicking a switch, says Reuters Breakingviews.

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-- changes -- to fit it the 120 year old company being broken into it to donate Eliot's eyes looking in this half of breaking views -- let's just get the did you sell out the way for -- so so lighting becomes a separate business. And and consumer health cat. Doesn't another child. Apps in India and -- -- the biggest of the race and they're putting that with the consumer tech business which has been doing. Pretty well actually see any bits of that triumvirate -- -- like that is actually been firing the other -- it's been struggling. But that some bigger reasons as to why they're struggling enlighten me. The industry itself is going through this big. Secular change so we're going from you know not -- -- a lot of light bulbs to are much more efficient and indeed type -- that. Doesn't need to be replaced very often so they're more expensive but you don't buy as many cultural show it's it's -- -- -- Yesterday it. Just read in the of the winds and and getting on on the Internet about this story has just been a lot of talk about this 120 year old company -- -- -- breakup of golf Obama prop. But let's face -- freshman who has never been Amanda shy away from moving this company forward from from from. Grand innovation if it needs if it needed. Yeah that's right he's the architect of the accelerate exclamation -- program and I think that exclamation mark tells you that. There are gonna -- surprises and sudden they're being handled and so far so. He spun off the the order your business unit to speak is that and it's been mindful for a long time. -- Nvidia and now. You know -- pads. I sort of step in the direction disliked instead of this year with the -- -- motive and and sort of systems. -- of the business thing at the lighting business being separates it and now he's gone. Even father so. He's going to try and do this he thinks this will help to focus minds. And I say money coming cost savings of -- -- -- 100 million euros next it's usually in the you're off to -- spending a 152 do you but in total they'll probably get by 2016. Savings of about a 150 million -- so. So yes significant sites so. Who told once it's been digested good news for the for the best interest of. Well you might think Saturn and suddenly it makes sense and they can't just sit there doing nothing I think that that will be a bit of a conglomerate discount consisting. And that's because wanting is just gonna take a while to turn around you've got to wait for the shift to start playing -- you've got to try and tunnel self. Into any more consulting business polite thing. Because that's where the money's going to be that you kind of sound a big system. Same with health -- I actually got that's another trend that I mean instead of selling just been devices they need to act to sell it. Comprehensive solution for hospital that this would just pretty much everything and the whole sort of trying to make shoulder. They can make the tech business work without -- not not make sense you know things that you'll you'll apple I want to roll your on your phone. It's gonna get a little help states. People are gonna starts three rushers -- that's how often community for the retail businesses that are on the -- Victoria but you're going to be thinking about -- more so if there is a natural fit that I think these things will take time so we won't see I don't think. Sudden bump in the sharp price -- on that we've we've probably going to see that's stocks take up for a while it's gonna take time. Very prominently thanks for that Dominique Kelly from breaking news the show's -- for these incidents in petty BST. And actually vote.

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Breakingviews: No Philips quick fix

Tuesday, September 23, 2014 - 03:43