http://www.theage.com.au/news/business/stage-set-for-symbion-bidd...

http://www.theage.com.au/news/business/stage-set-for-symbion-bidding-war/2007/06/18/1182019036262.html

THE scene is set for a bidding war for Symbion Health's pharmacy and consumer operations, after Sigma Pharmaceuticals finally put a firm, $1.08 billion bid on the table in a move to beat private equity groups Ironbridge and Archer Capital to the assets.

The Symbion board was believed to be bunkering down late last night to discuss the offer, with an announcement likely as early as today.

Sigma's offer, launched several hours after the market's close yesterday, comes three weeks after Symbion agreed to accept a Healthscope-led $2.8 billion buy-out, under which Ironbridge Capital and Archer Capital would take control of the company's drug distribution and vitamin-making operations.

Healthscope is buying Symbion's pathology business, medical centres and laboratories.

But Sigma chief executive Elmo de Alwis tried to shove Ironbridge and Archer out of the deal last night, with an unconditional all-cash bid that is believed to meet the criteria the Symbion board previously set out.

Mr de Alwis is being partnered in the deal by boutique investment bank Carnegie Wylie and Company, through its Corporate Opportunity Fund — a joint venture with Sun Super.

He had been considering a joint offer for Symbion's pharmacy and consumer operations, with Sigma buying the consumer part and the Carnegie Wylie and Company and Sun Super consortium obtaining the distribution arm in a bid to avoid competition concerns.

According to documents of its merger with Healthscope, Symbion can accept a superior offer for the consumer and pharmacy businesses but it must be cash, valued at more than $1.07 billion, and be capable of receiving Australian Competition and Consumer Commission approval.

It is believed the offer Sigma put to the Symbion board last night satisfies these conditions.

Mr de Alwis and Symbion chief executive Robert Cooke were unavailable for comment.

A health-care analyst who declined to be named said Sigma's offer was good news for Symbion shareholders, who could almost certainly expect a bidding war.