higher bid from symbiom possible this week, page-4

re: higher bid from symbiom Looks like Symbion will wait until SIP finalize their offer. The idea is that once SIP look at the books they will know what the real value is, and whether there are any more skeletons in the closet. Assuming they proceed with an offer then Symbion will feel comfortable to offer something above that. But the process could take months.

article;

"SYMBION Health wants to make rival Sigma Pharmaceuticals pay a high price for pharmacy wholesaler Australian Pharmaceutical Industries.

Symbion has been touted as a rival bidder for API, which is considering a $643 million offer from Sigma. But Symbion has not yet decided on a bid.

"If we weren't the successful party, the best outcome for us is for someone else to pay the most that we can make sure they do," Symbion chief financial office Mark Hooper said. He said Symbion would benefit from industry consolidation regardless of whether it participated in the deal. It expected to increase its market share by 5-15 per cent to up to 45 per cent if Sigma and API merged.

But Symbion would not rule out bidding for API, believing it did not have to make an offer until well after Sigma and API reached terms of agreement.

It is likely Sigma, which increased its offer to $2.50 a share last month, would demand an exclusive due-diligence agreement to protect itself against rivals. API and Sigma have been in talks for three weeks, with both hoping for a deal before the end of the year. API wants a scrip option to Sigma's all-cash offer.

Symbion chief executive Robert Cooke said the company was on track to deliver on its fiscal 2007 guidance of earnings before interest and tax, post-securitisation, of $180-$190 million, representing growth over the previous year of 13-19 per cent.

Symbion gained 7¢ to $3.30 yesterday. Sigma was steady on $2.85 and API was unchanged at $2.45.