Siemens Is Said to Favor Direct Spinoff of Stake in Healthineers

Siemens AG is leaning toward handing a large stake in its Siemens Healthineers AG unit to its own shareholders as a dividend in kind, according to people familiar with the matter.

The conglomerate, which currently holds just over 71% in the medical equipment maker, has been preparing to reduce its stake through a so-called direct spinoff, the people said, asking not to be identified because the information is private. The company could announce the plans as early as next week, they said.

Siemens’ stake in Healthineers is currently valued at around €35 billion ($41 billion). The company and its advisers ...