Tenet Healthcare Corp. said yesterday it has ended acquisition talks with Healthscope Limited, the second-largest private hospital company in Australia.
"Due to the sequence of events associated with the acquisition process, including the premature disclosure of non-public information regarding Tenet's preliminary interest in Healthscope, Tenet has been unable to complete the work necessary to thoroughly convey to shareholders the potential value, including the inherent risks and opportunities, of this transaction," the Dallas-based hospital chain said in a media release.
"Although the due diligence process has commenced, it is in the early stages and has not proceeded as quickly and completely as anticipated. Tenet has concluded that in order to eliminate a prolonged period of uncertainty and market speculation surrounding this possible transaction, it is best to withdraw from this process."
Last week, Tenet confirmed the usually confidential discussions were under way to quell rumors that it said were affecting Tenet stock.
Healthscope owns and operates 43 hospitals representing approximately 15% of Australia's private hospital market, and also operates the country's third-largest pathology business.