UPDATE 2-Philips sells NXP stake to underfunded UK pension

* Will book 140 mln euro gain in Q3

* NXP listed on stock market in early August

* Philips says will update UK pension deficit in Dec

* Shares down 0.2 pct in early trade

(Recasts, adds company comment, share price)

AMSTERDAM, Sept 7 (BestGrowthStock) – Dutch electronics group
Philips (PHG.AS: ) said it will use its stake in chipmaker NXP
Semiconductors NV (NXPI.O: ) to help address the deficit in its
British pension fund, booking a gain in the process.

Philips said on Tuesday it would make a cash contribution of
350 million euros to the pension fund, which the fund would then
use to buy the 17 percent of NXP the Dutch firm still owns.

The sale will lead to a 140 million euro gain in the third
quarter, Philips said.

Philips shares fell 0.2 percent in early Amsterdam trading.
Analysts said the deal would not have a material impact on
Philips, even though they were surprised by the size of the

“The one-off contribution to the UK pension fund is somewhat
higher than we had pencilled in,” SNS Securities analysts said
in a research note.

Philips said in its 2009 report that it was reviewing
funding needs for its U.S. and UK pension funds, both of which
had deficits. It did not specify how large the UK deficit was.

A Philips spokesman on Tuesday declined to elaborate on the
size of the deficit or say whether the NXP deal would fully
cover the shortfall. He said the company would provide a
comprehensive update on its pension funds in December.

NXP was created in 2006 when a private equity consortium
bought Philips’ chipmaking unit. The company listed on the stock
market in New York last month in an initial public offering that
raised less money than planned. [ID:nN05189918]

NXP shares closed Monday at $11.89, down 15 percent from
where they priced on Aug. 5.
(Reporting by Ben Berkowitz and Aaron Gray-Block; Editing by
Erica Billingham)

UPDATE 2-Philips sells NXP stake to underfunded UK pension