Nov. 26 (Bloomberg) -- Royal Philips Electronics NV and European companies raised at least 3.7 billion euros ($4.9 billion) selling holdings to money managers this month, tapping gains in stock indexes that have boosted the value of their investments.

Philips, Europe's biggest maker of CD players, yesterday raised 720 million euros selling 3 percent of Vivendi Universal SA, owner of the world's biggest music company. Deutsche Telekom AG last week raised 348 million euros selling its remaining stake in satellite-broadcaster SES Global, ending a 10-year investment.

Europe's Dow Jones Stoxx 600 Index touched an almost 2 1/2 year high on Nov. 18, encouraging more companies to sell assets as they focus on their main businesses. Ten European companies this month sold holdings, raising almost three times the amount from five such sales in October, data compiled by Bloomberg show.

``The stock market has recovered enough that you can sell these stakes now,'' said Hilary Cook, director of investment strategy at Barclays Private Clients in London, which manages about $45 billion. ``Companies want to focus on their core businesses.''

Philips, which last week said semiconductor sales in the first quarter would be ``weaker,'' plans to expand its lighting, appliances and medical systems units -- businesses typically less sensitive to economic cycles than its semiconductor and electronics units. The company also sold a 2.8 percent stake in chip-equipment maker ASML Holding NV for about 163 million euros on Nov. 12.

Electricity, Tanks

Energie Baden-Wuerttemberg AG, Germany's fourth-largest utility, raised 281 million euros selling a stake in Austrian power company Osterreichische Elektrizitatswirtschafts-AG, also known as Verbund. Karlsruhe-based EnBW is trying to stem losses by shedding almost half its 400 units and cutting 2,000 jobs.

Companies can sell these stakes ``at a significant premium to what they would have got eighteen months ago,'' said Cook of Barclays Private Clients. ``If you've got money tied up in a non- performing asset, you can reinvest that money.''

Roechling Industrie Verwaltung GmbH, a German holding company, this week announced plans to sell its controlling stake in German tank maker Rheinmetall, worth as much as 626 million euros, after the defense company's shares advanced 81 percent this year. Goldman Sachs Group Inc. is managing the sale, to be completed this week.

Deutsche Telekom, Europe's biggest phone company, sold shares in SES Global after the stock gained more than 68 percent in the last 18 months. Shares of Verbund advanced 78 percent before EnBW sold its stake in the company, according to Bloomberg data.

In October, government share sales dominated the European market. Italy and Germany offered a combined 9.6 billion euros of shares in former state-owned monopolies including Italian power company Enel SpA and Deutsche Telekom.

To contact the reporter on this story: Edward Evans in London at eevans3@bloomberg.net.

Last Updated: November 25, 2004 19:10 EST