US –based hospital firm Tenet confirms bid for Healthscope
American hospital operator Tenet Healthcare Corp, the second-largest publicly traded hospital in the US, confirmed reports it is one of the bidders for Australian hospital operator and pathology services provider, Healthscope Ltd.
A representative from the Chicago-based hospital firm did not mention the price but said that acquisition talks with Healthscope is in the preliminary stages.
Media reports said Tenet's takeover offer values Healthscope at $1.82 billion. This offer is more than the earlier takeover bid of $5.75 per share by a private equity consortium.
Earlier this week, Healthscope announced that it has received two new takeover bids at $5.80 per share.
Healthscope Board said each proposal is "equal to or superior to the consortium's proposal" received by the hospital operator last May. It said that bidders will be granted the opportunity to conduct due diligence, subject to negotiation of appropriate confidentiality agreements.
Analysts gave Healthscope a valuation of $5.80 and $6.70 per share based on a break-up of its hospital operations and pathology businesses.
Healthscope board continues to recommend its shareholders to take no action.
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.
Healthscope Board 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.
Healthscope shares last traded at $5.57.