Philips CEO: $1Bil Acquisition of Volcano Is Great

Philips CEO Frans van Outen discusses the company's recent acquisition and the impact of the Russia crisis. Despite challenges in Russia, Philips sees growth opportunities in minimally invasive therapies and plans to separate into two standalone companies focusing on health technology and lighting solutions. The acquisition strategy aims to enhance productivity in healthcare systems. Philips is confident in its offer for Volcano, expecting shareholder approval due to the synergies and fair pricing.

What is the primary reason Philips is pursuing the acquisition discussed in the first section?

• To increase its market share in Russia

• To address the growing demand for minimally invasive medical technologies

• To diversify into new industries

• To expand its lighting solutions business

What strategic decision did Philips announce at their Capital Markets Day?

• To separate into two standalone companies

• To merge with another major tech company

• To focus solely on lighting solutions

• To exit the Russian market

What is the expected benefit of Philips' strategic separation?

• Increased market share in Russia

• Better capital market access and growth

• Reduction in operational costs

• Expansion into new geographical markets

How does Philips plan to convince Volcano's shareholders to accept their offer?

• By offering shares in Philips' lighting solutions company

• By reducing the acquisition price

• By promising to maintain the current management team

• By offering a higher premium than the current share price

What challenge did Volcano face earlier in the year that affected its share price?

• A decline in the global economy

• Pressure from activist investors

• A stagnation in growth

• A major product recall