Siemens Suspends Sales Process Of Its Hearing Aid Unit-Sources

Siemens AG (SI) suspended the sale of its hearing aid unit in which private equity firms have shown interest, several persons familiar with the matter told Dow Jones Newswires Monday.

"Siemens has made no statement yet, but it's understood that the sales process won't proceed," one person said. Another person said that it can't be ruled out that the sales process will resume at a later time, but not in the next few months.

According to information seen by Dow Jones last month, Siemens is looking to sell the business for close to EUR2 billion, but financial investors are willing to pay between EUR1.5 billion and EUR1.6 billion.

Among the bidders are Permira, which had teamed up with Nordic Capital to make a joint bid for the hearing-aid unit. Other bidders include a consortium made up of Australian cochlear-implant maker Cochlear Ltd. (COH.AU), Hellman & Friedman and Kohlberg Kravis Roberts & Co.; Cinven Group and Bain Capital.

Company Web site: www.siemens.com

-By Archibald Preuschat, Marietta Cauchi and Eyk Henning Dow Jones Newswires; [phone]; [e-mail]