Private equity firms CVC and KKR have offered the highest bid for acquiring Philips lighting components business, a Reuters report cited three sources familiar with the matter saying.

Competitor Bain Capital is currently trailing behind CVC and KKR, but it is still possible for it to make a better offer, the sources said.

According to the sources, Philips will keep the bid battle going until the end of the week in an effort to get the optimal price for its assets, which is valued at about EUR 2.5 billion (US $2.6 billion), said the sources.

One of the sources believe CVC and KKR will snatch the deal, as there is a “significant price gap” between the two offers, lowering Bain’s possibility of matching or outbidding. The source declined to be named as the matter is confidential.

Philips' adviser Morgan Stanley will be plans to enter exclusive talks with one of the two set bidders in the next few days, and concluding the process which started after the Dutch group announced the spin-off of Philips Lumileds and automotive lighting component business into a stand-alone company last year.