Siemens Could Soon Take Over HearUSA

Industrial conglomerate Siemens AG (SI) could acquire all or parts of U.S.-based hearing aid retail chain HearUSA Inc. (EAR), with which it has an ongoing dispute over payments, Siemens said in an filing to the Securities and Exchange Commission Tuesday.

HearUSA distributes Siemens products in the U.S. but owes the Munich-based company several million dollars.

On Dec. 22, Siemens representatives spoke with HearUSA's chief executive officer and chief financial officer about payment of approximately $1.9 million at the end of December and about $2.2 million at the end of January. HearUSA said it wouldn't be able to pay everything and requested financial support from Siemens.

Siemens allowed HearUSA to postpone a $1 million payment due at the end of December by one month, but didn't want to make any further concessions. Instead, it requested information about the company's financial and business situation.

Siemens already has a 14.1% stake in the company. It wouldn't have to raise large amounts for a takeover, it said in the filing. The market capitalization of the company is around $25 million.

"Siemens AG has from time to time explored and expects to continue exploring potential strategic transactions involving its audiology business, including Siemens Hearing Instruments," Siemens said.

-By Matthias Karpstein, Dow Jones Newswires; +49 69 29 725 500; matthias.karpstein@dowjones.com

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