Earlier today, the appeal court (Oberlandesgericht) in Dusseldorf, Germany, held a hearing regarding the application for injunctive relief to close the sale of GN ReSound to Phonak. Departing from previous case law, the judges opened the meeting by stating that they did not have the power to grant injunctive relief in merger prohibition cases. In a hearing lasting approximately two hours, GN and Phonak contested this view, claiming among other things that this would give the German Federal Cartel Office (Bundeskartellamt) unfettered power to prohibit mergers without effective judicial review as large transactions involving listed companies cannot be kept in limbo for years awaiting the outcome of main proceedings. The appeal court will announce its decision on injunctive relief for closing of the transaction on August 8 at 10 am. If the court does not change its view, the decision will mark a departure from European legal standards. Background On October 2, 2006, GN signed an agreement to sell GN ReSound to Phonak for a total consideration of DKK 15.5 billion in cash on a debt and cash free basis. The transaction is subject to approval by the competition authorities in a number of countries. When, in April 2007, the Bundeskartellamt decided to prohibit the transaction claiming that this would result in collective market dominance in the German hearing instrument market, GN and Phonak decided to appeal the decision to the competent court. In parallel to the main appeal case, GN is applying for injunctive relief to be able to close the transaction quickly, one of its arguments being that a normal time-consuming court process would damage GN's hearing instrument business. Today's court meeting was a hearing held in connection with the application for injunctive relief. For further information, please contact: Jens Due Olsen Deputy CEO GN Store Nord A/S Tel: +45 45 75 02 00 Jens Bille Bergholdt VP Investor Relations GN Store Nord A/S Tel: +45 45 75 02 70
Court hearing held regarding injunctive relief for the sale of GN ReSound
| Source: GN Store Nord A/S