Tenet Withdraws from $1.8 billion Healthscope Sale Process

Tenet Withdraws from $1.8 billion Healthscope Sale ProcessTenet Healthcare has withdrawn from a sales process of more than $1.8 billion of Healthscope, the Melbourne based Hospital operator. With this, Heathscope became devoid of one of its suitors because of the recoil of its own investors.

Australian operator declined to 5c to $5.44 i. e., almost 1%, yesterday.

Addressing the market, Healthscope said that with the withdrawal of US-based Tenet, only two private equity consortiums were left in the formal bid.

Healthscope stated that it has been informed that this decision was to end the "speculation and rumors", which affected the trading market of Tenet's securities.

According to the New York Stock Exchange, the shares in Tenet collapsed 17% last week, following its confirmation of $5.80 per share bid to hold Healthscope.

After this announcement, a prominent share holder publically discussed the concerns related to the offer. A major shareholder also went public with its concerns about the proposed bid.

Tenet said that apart from its shareholders, delays in the "due diligence process" were equally responsible for the same.

US group informed investors yesterday that because of the periodicity of the vents related to the sale process, Tenet could not complete the work required in order to communicate to the shareholders, the potential value of the proposed transaction.