THE battle for ownership of pathology and medical centre operator Symbion is continuing, with a new deal from private hospital owner Healthscope expected before the end of next week.
Talks between the two companies are expected to intensify this week after Healthscope's $2.86 billion takeover bid was blocked by Primary Health Care, which used its 20 per cent stake in Symbion to narrowly vote it down.
"A merger of the assets of the two companies is still on the cards," a source close to the deal said.
"There's an enormous amount to do. Both parties are optimistic that an alternative plan will hopefully be structured by late next week."
Discussions have focused on Symbion selling its pathology, medical centres and diagnostic imaging assets to Healthscope, and its pharmacy and vitamins business - including Cenovis and Nature's Own - to Healthscope's private equity partners Ironbridge Capital and Archer Capital.
The alternative deal would only require the approval of a simple majority of Symbion shareholders.
Symbion's managing director Robert Cooke said: "We have a series of meetings this week to work out the structured details of an alternative deal."
Primary managing director Edmund Bateman has remained silent on his intentions since he used his majority stake in Symbion to block Healthscope's takeover of Symbion.
Primary, a medical and pathology operator, borrowed most of the $536 million to accumulate its 20 per cent stake in Symbion and has to meet interest payments of up to $3 million a month.
A Primary spokeswoman said: "The ball is in the court of both Healthscope and Symbion to come up with an alternative plan before Primary decides what to do next."
A market update by Healthscope and Symbion is expected today, a week after Healthscope's attempted takeover of Symbion was rejected by shareholders last Tuesday.
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