Report: Siemens Turns To Private Equity To Unload Hearing Aids

Siemens AG

got cold feet for the expected initial public offering of its hearing-aid business and instead hopes to sell the unit for $2.6 billion to private equity investors, according to a report Tuesday. Chief Executive Officer Joe Kaeser, named to the role last year, has been selling off non-core operations and beefing up the Munich-based engineering company's presence in energy markets. An IPO spin-off of its hearing-aid business had been widely expected but Bloomberg reported Tuesday that weak equity markets have convinced the company to peddle the business to private investors. EQT Partners AB is the "front runner," according to the report, which said a deal could be unveiled "in the next few weeks." Permira Advisers LLP as well as Denmark-based GN Store Nord A/S (GN) have also shown interest, according to unnamed sources cited in the report. Siemens last month agreed to acquire Houston-based oil field equipment maker Dresser-Rand Group Inc.

for $7.6 billion. It also exited a long-standing joint venture with home-appliance maker Robert Bosch GmbH, selling its stake for $3.9 billion.