Court rejects Sonova''s appeal in ReSound takeover

13 August 2007

Mumbai: Sonova Holding AG has scrapped the proposed 15.5-billion Danish kroner ($2.9 billion) offer for ReSound, the hearing aid business of Denmark's GN Store Nord A/S, after a German court declined to overturn a veto by antitrust regulators.

An acquisition of ReSound by Switzerland's Sonova, previously known as Phonak Holding AG, would have created the world's biggest maker of hearing aids.

A Düsseldorf court turned down Sonora's appeal against the regulator's rejection saying it lacked the authority to tell the German watchdog, the Bundeskartellamt, to award a preliminary approval.

The court said Sonova, which also makes hearing aids, would have to appeal directly to the Bundeskartellamt.

Last week, after the court issued its preliminary findings, Sonova had hinted that it might walk away from the deal if it wasn't allowed to proceed and would return Sfr300 million ($251 million) in cash to shareholders.