Siemens CEO Seen Urged to Weigh Health Split: Real M&A

Siemens AG’s new chief executive officer may be able to unlock almost $7 billion of value by splitting off the health-care division that was built on one of his predecessor’s most criticized deals.

Joe Kaeser, the 33-year Siemens veteran who became CEO three months ago, has received proposals from investment banks about an initial public offering or spinoff of the health-care unit, according to two people familiar with the matter, who asked not to be named because the discussions were private. While it’s the most profitable of the German company’s four so-called sectors, the health-care operations would be valued more highly as a standalone entity and deliver almost 5 billion euros ($6.7 billion) for Siemens investors, said Societe Generale SA.