Healthscope Ltd announced that it has received a $1.74 billion takeover approach from a private equity consortium.

In a statement to the Australian Securities Exchange (ASX), the hospital, pathology laboratory, and collection centre operator said it received an indicative, non-binding and confidential proposal to acquire all of the company's shares by scheme of arrangement for $5.50 a share.

Healthscope said it has not formed a view with respect to the proposal and recommended shareholders take no action at this time. It said it would make a further announcement to the market "in due course".

Healthscope has yet to announce the name of the bidder.

The company booked a profit of $72.29 million for the 2009 fiscal year and reported an interim profit of $45.1 million last February.

The Melbourne-based company said in February that it had a number of projects in the pipeline. In April, Healthscope unveiled a proposal to build a 300-bed hospital in Coburg, Melbourne.

In 2007, Healthscope failed twice in friendly takeover bids to acquire Symbion, which was later bought by Healthscope's rival Primary Health Care Ltd. for $2.65 billion.

Healthscope share was last traded at $4.50.