US-based Tenet Healthcare Corporation has withdrawn its takeover offer for Australian private hospitals operator Healthscope Ltd.

Tenet said in a statement it had pulled out its bid for Healthscope due to "premature disclosure of non-public information" on its interest in Healthscope.

"Tenet has been unable to complete the work necessary to thoroughly convey to shareholders the potential value, including the inherent risks and opportunities, of this transaction," Tenet said.

According to Tenet, the due diligence process has commenced and "has not proceeded as quickly and completely as anticipated."

Tenet said the decision to withdraw from the Healthscope bid has been made "in order to eliminate a prolonged period of uncertainty and market speculation surrounding this possible transaction."

Shares in Tenet fell more than 17 per cent last week following announcement that it had entered talks with Healthscope.

Media reports said that Tenet's takeover bid valued Healthscope at $1.82 billion or $5.80 per share.

Healthscope said last week it had received three takeover proposals, including that of Tenet, but declined to identify the parties.

Healthscope board continues to recommend its shareholders to take no action.

It also said the company is performing well and it is expected to continue to deliver strong growth. The hospital operator 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 owns 43 hospitals, representing 15 per cent of Australia's private hospital market, and is the country's third-largest pathology business.

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