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November 27, 2007 |
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SYMBION HEALTH: Primary Health Threatens to Withdraw Bid Primary Health Care threatened to withdraw its AU$4.10-a-share offer for Symbion Health Ltd. if Symbion shareholders will vote in favor of Healthscope Ltd.'s proposal to buy Symbion's diagnostic and medical center assets, Teresa Ooi writes for The Australian. The Australian relates that Primary managing director Edmund Bateman is determined to create more uncertainty for shareholders by telling them he will cancel the AU$2.65-billion offer he made earlier this month. Dr. Bateman, according to the report, wrote to Symbion shareholders urging them to say "no" to Healthscope's uncertain and risky proposal. However Primary's letter, notes the article, has sparked some anxiety among shareholders, with one saying that Primary has been economic with the truth as it failed to list the 15 conditions attached to its bid. The report adds that Dr. Bateman claims that its AU$4.10-per- share offer was at a healthy premium to the independent expert's valuation range of between AU$3.52 and AU$3.91. Primary, which is Symbion's largest shareholder, owning 20%, is quoted by Ms. Ooi as saying, "If shareholders vote in favor of the diagnostic proposal absent of a favorable ATO ruling, they will be subject to uncertainty for potentially some considerable time." The report states that the Australian Securities & Investments Commission has already been alerted to Primary's strong-arm tactics and letter, containing selective information. Meanwhile, Symbion managing director Robert Cooke is quoted as saying, "The board has already rejected Primary's AU$4.10-a- share bid as inferior to the current Healthscope offer on the table. Primary's threat to walk away from the deal will make no difference. Ultimately it's up to shareholders to decide. However, it is disappointing that Primary has decided not to put all the information and conditions before shareholders." About Symbion Health Symbion Health Limited, headquartered in Melbourne, is a diversified Australian domestic health care business. Most of its earnings are derived from the provision of pathology and diagnostic imaging services. The company also manufactures and markets vitamin and mineral supplements (consumer nutriceuticals). In addition, it operates a wholesale medical products distribution network, focusing on the distribution of prescription drugs to pharmacies and hospitals. * * * On Jan. 30, 2007, Moody's Investors Service placed the Ba1 issuer rating of Symbion Health Limited on review for possible downgrade after the company's announcement that it has received an ownership proposal from Primary Health Care Limited (unrated). |
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