Healthscope gets two love calls from private groups
Hospital operator and pathology owner Healthscope has received two new takeover bids that values the company at $1.84 billion, which may challenge the bid of private equity consortium Blackstone Group.
Healthscope is believed to have received offers from private group Kohlberg Kravis Roberts and US-based Tenet Healthcare.
Healthscope shares increased to 4.97 per cent and closed at $5.49 yesterday after two new offers pitched $5.80 a share.
A spokesperson of Healthscope said it will allow the new bidders to review its financial accounts. The company's profit increased to 36 per cent over the past nine years.
Several analysts have admitted they are not sure where the value of the deal comes from.
"A break-up makes most sense," UBS analyst Andrew Goodsall pointed out.
Mr. Godsall added that the company mangers were “solid operators.”
"If there's (an) earnings upside to be had, they would have had it."
He said that selling the pathology company and placing all its hospitals in a real estate fund could increase its shares as high as $7 each.
However, another analyst commented that long term should be the main goal since there is a higher possibility that a hospital business may grow and be successful.