A spokesperson for private hospitals operator and pathology supplier Healthscope will permit private equity consortium to perform due diligence on the company provided that both parties will agree on a confidentiality agreement.

It was announced last week that Healthscope received a takeover bid from a private equity group of $5.75 per share, which puts the company at $1.82 billion.

The proposal was stretched higher from an earlier bid of $5.50 a share from the same anonymous equity consortium.

A Healthscope representative revealed on Monday that the revised proposal is currently subject for review and is considering to conduct a negotiation of an appropriate confidentiality agreement. The private consortium will be granted access for due diligence.

The spokesperson adds that due diligence will take several weeks.

“The due diligence process may or may not result in an offer for the company or a recommendation by the board,” spokesperson said.

“If it does not, the board believes that Healthscope had a very attractive independent future and that the company is well positioned to continue to deliver strong growth."

Healthscope's shares closed at $5.24 last Friday.

Godman Sachs, JB Were, Lazard, and Minter Ellison were appointed as the company's advisers.

Healthscare is a national and international provider of private healthcare services in Australia. It supplies to 43 hospitals and management services as well.