Royal Philips, the second largest shareholder, recently increased its stake in the medical technology giant. Two months ago, the Dutch company resolved claims related to faults in its sleep apnea equipment.
According to a document submitted to the Netherlands market regulatory authority AFM on Wednesday, as of June 28, Artisan Partners GP LLC increased its stake in Philips to 10.01%. This increase consolidates Artisan's position as Philips' second-largest shareholder, second only to the Agnelli family's Exor NV.
Philips spokesman Steve Heywood said in an email, "For a long time, Artisan has held more than 9% of Philips' shares, and recently increased to 10% after the first-quarter results announcement."
Artisan Partners did not respond to emails seeking comment outside of business hours.
Earlier, Exor also increased its stake in Philips from 16.10% to 17.51%. The Dutch company is regaining some investors' confidence after reaching a lower-than-expected settlement in late April regarding claims related to sleep apnea equipment in the United States.
According to statistics, the recall caused approximately $5 billion in losses to the company due to concerns over the decomposition of noise-reducing foam inside the devices and potential health issues. The US Food and Drug Administration (FDA) has classified the fault as a Tier 1 issue, the most severe. The company is still under investigation by the US Department of Justice and has not made any financial provisions at this time.
The Philips share price has risen by about 17% this year, but has still fallen by 44% since the recall was announced in June 2021.
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