Healthscope Acquistion Plans Falter
A ruling by the Australian Tax Office indicated that the intended deal between Symbion Health and Healthscope would not qualify for the roll-over capital gains tax relief. Healthscope indicated that they will cease completion of plans to buy the diagnostics arm of Symbion, as detailed on the Symbion web site.
Symbion further stated that this will halt their planned dealings with Ironbridge Capital and Archer Capital, the private equity organizations who were collaborating in the planned acquisition. The private equity organizations were slated to acquire the pharmacy services and consumer business from Symbion. This is the latest news in a series of complications for the intended merger of assets and operations between Symbion and Heathscope.
The initial bid from Healthscope to purchase Symbion was overshadowed by a bid placed by rival Primary Health Care in October, which was posted on Hospital Buyer. This deal between Symbion and Healthscope to integrate the diagnostics businesses was described after the Primary Health Care deal was announced.
In the meantime, Primary Health Care has acquired more than twenty percent of the stock holdings in Symbion. Healthscope, alternatively, has increased their share holdings as well, according to the Financial Times. Healthscope claims to now hold ten percent of the Symbion shares.
Symbion still firmly rejects the takeover offer from Primary Health Care. The Primary Health offer has been referred to as inadequate. Moreover, the management team at Symbion note that the deal proposed by Primary does not provide company shareholders with adequate future rewards in light of potential synergies and growth.
November 30, 2007 Related topics: Mergers & Acquisitions