*

Strong investor appetite allows Siemens to increase

transaction

size

*

Proceeds expected to help finance last year's acquisition

of

Altair Engineering ( ALTR )

*

Siemens plans to further reduce Healthineers stake during

2025

(Adds company comment, details of transaction, share price)

Feb 20 (Reuters) - German engineering company Siemens

has raised roughly 1.45 billion euros ($1.5 billion)

after selling a stake in healthcare subsidiary Siemens

Healthineers, with proceeds expected to help pay for

its acquisition of U.S. software firm Altair Engineering ( ALTR ).

The company sold a 2% stake, or 26.5 million ordinary

shares, via a private placement, it said late on Wednesday,

reducing its stake in the medical equipment maker to 73% from

75%.

CEO Roland Busch has said that Siemens would likely reduce

its stake in Healthineers by around 5% this year, and also

offload 6% of its holding in Siemens Energy.

Strong investor appetite allowed Siemens to increase the

transaction size from 22 million shares initially. The company

said proceeds will be used for "general corporate purposes."

A Siemens spokesperson said the company had previously

communicated that proceeds would help to finance the acquisition

of Altair Engineering ( ALTR ).

Last year's $10.6 billion acquisition of Altair was the

second biggest in the company's history.

"This intention has not changed," the spokesperson said.

Siemens has agreed to a lockup period where it will not sell

more of its remaining 823.5 million shares for 90 calendar days.

Shares in Siemens Healthineers fell in early trading.

Morgan Stanley, Barclays, and BNP Paribas acted as global

coordinators and book runners for the sale, which will be

completed on February 24.

Siemens also recently reduced its holding in Siemens Energy

from 15% to 14.3%, and has said it will gradually reduce this

further during 2025.

The company intends to provide a strategic update on Siemens

Healthineers to investors in December this year, CFO Ralf Thomas

told analysts last week.

($1 = 0.9610 euros)