syb and primary

Looks like there is more to unfold, looks like the games have started hehe


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HOSPITALS operator Healthscope says rival Primary Health Care is interested in takeover target Symbion's pathology assets.

Medical centres and pathology group Primary, which is Symbion's biggest shareholder with a stake of 20 per cent, has been at the centre of speculation that it may launch its own takeover bid for Symbion, or follow some other option in relation to investment in Symbion.

Healthscope managing director Bruce Dixon said today that he was contacted twice yesterday by an intermediary who told him that Primary's advisor, Caliburn, wanted to speak to him.

“So I called them. It would have been remiss of me not to,” Mr Dixon said. “They said they had a proposition about Symbion's NSW pathology assets. I replied to them with what I've said in public before: that NSW pathology was core to our (merger) proposal and that it was not negotiable.

“That was it. That was the end of it.”

Mr Dixon said he was contacted again later and urged to call the Primary camp. “I didn't call because there was nothing to say,” Mr Dixon said.

He said there were no talks between Healthscope and Primary.

“Healthscope has no intention of entering into any discussions or deals with Primary in connection with the Symbion Health proposal,” he said.

Symbion shareholders are scheduled to vote on a scheme of arrangement to implement the Healthscope merger proposal on September 11.

Healthscope's proposal has been endorsed by the Symbion board.

Primary said earlier this week that it might launch a takeover for Symbion in conjunction with private equity, but a potential joint bid was one of several options being considered.

There is speculation that Primary may make a $3.5 billion cash bid for Symbion in coming weeks with private equity firm Pacific Equity Partners.

Primary has said talks with private equity were incomplete and may or may not lead to a bid for Symbion.

Symbion shares were steady at $4.28 at 1144 AEST today. Healthscope was four cents lower at $5.77, and Primary was steady at $11.66.

- AAP