Germany's Fresenius drops $4.09 bn bid for rival Rhoen-Klinikum
04 Sep 2012
German health care company Fresenius SE today said that it will not make a fresh bid for rival Rhoen-Klinikum, dropping plans to create the largest private-sector hospital operator in Germany.
"Fresenius SE & Co. KGaA has informed Rhoen-Klinikum AG that it does not intend to submit a renewed takeover offer for the shares of Rhoen-Klinikum AG for the time being," Neustadt a. d. Saale-based Rhoen-Klinikum said in a statement.
"The Management Board continues to consider it logical from the strategic point of view to merge two large private clinic operators in Germany," it said, adding that it would seek to play an active role in the consolidation of the hospital market.
In April, Fresenius launched a €22.50 a share or €3.1-billion ($4.09 billion) cash bid for Rhoen-Klinikum, a premium of 52 per cent to the company's closing price on 25 April.
Rhoen-Klinikum's founder and chairman, Eugen Muench, who owns 12.45 per cent of the company, had supported the deal.
Fresenius, which expected to close the deal by the third quarter, had said that its offer was contingent on a minimum acceptance of 90 per cent of Rhoen's share capital at the end of the offer period ending 27 June.