BSN Medical, the German bandages maker, has tagged itself as the latest private equity-owned company to prepare for an initial public offering after its owner Montagu hired Morgan Stanley to plan a flotation valuing it as high as €2bn ($2.7bn), the Financial Times revealed on Monday.

Montagu had rendered BSN up for sale 18 months ago, however, was forced to abandon the auction on account of the financial turmoil.

Amidst all this, it is speculated that there could be a strong interest in BSN from strategic buyers, such as 3M and Kimberly Clarke, and private equity groups, such as Apax Partners and Bain Capital. If they bid, Montagu may decide to sell BSN rather than float it, the FT added.

In contrast, a rebound in debt markets is supporting buy-out groups reaffirm their want for deals. After sitting on the sidelines for two years during the financial crisis, buy-out groups eager to divulge money, seeking many IPO candidates as fruity targets.

Healthcare serves as the most attractive sectors for private equity as it is hoped to be the only sector that is relatively immune to any economic downturn due to the demographic pressures of aging populations and the spread of improved medical technology.

Hamburg-based BSN was created in 2001 as a joint venture between Smith & Nephew and Beiersdorf. It was bought by Montagu for bought 1.03 billion Euros in 2005.