Tenet Healthcare Corporation (THC) in Talks to Acquire Australia�s Second Largest Hospital System
Tenet Healthcare Corporation (NYSE: THC), a Dallas, Texas-based healthcare services company, confirmed on Tuesday that it is in talks regarding a potential acquisition of Healthscope, Australia�s second largest hospital corporation. In a statement released by Tenet, the company said that it has a long standing policy of not giving any comments on market rumors; however, it made an exception in the case of Healthscope in response to the recent volatility seen in its shares.
Healthscope owns and operates 43 hospitals in Australia. It also operates Australia�s third biggest pathology business. In 2009, the company had an EBITDA margin of 13.8% and its revenue grew by 11.1%. Australia has a strong and growing economy. And with a growing population and with more and more people opting for private health insurance coverage, the country provides a great opportunity for private health care service providers.
Tenet says that if the deal goes through, it will be at a price which creates value for its shareholders. The company said it believes that the acquisition will enhance its payer mix, margins and growth rates. The transaction will also enable the two companies to share knowledge and capabilities. Tenet has said that the transaction is at a preliminary stage, at the moment and that it will provide further details at the Goldman Sachs Investor Conference, which will be held on June 15, 2010.
Shares of Tenet were up more than 8% in today�s trading. The stock reached a high of $5.16 in trading and at last check was up 7.84% to $5.09. Volume was up from daily average of 11.62 million to 21.74 million.
Tenet stock has a 52-week range of $2.46-$6.46. Currently, the stock! is trad ing below its 50-day and 200-day moving averages. It has seen support at around $4.09 and resistance at around $5.32.
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