Siemens Drops Unit Sale Plan (SI)
German conglomerate Siemens (NYSE: SI) has dropped plans to sell its hearing aid unit. The company shelved its plans as a result of low bids. Siemens (SI) had previously expressed its reluctance to consider bids below $2.75 billion. According to sources, Siemens is now considering investing more on its own in the hearing aid unit.
Reuters is reporting that the company will have to invest nearly 600 million euros in order to strengthen its distribution channels. Several private equity firms as well as other companies had expressed their interest in buying the unit. Private equity firms Bain Capital and Cinven were among the frontrunners.
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