No Deal Over Symbion, Says Healthscope Chief

The Age

Friday February 22, 2008

Nabila Ahmed

HEALTHSCOPE boss Bruce Dixon has ruled out a deal with rival Primary Health Care's Ed Bateman for Symbion's pathology assets in Victoria and WA, saying he was happy for now to walk away from the deal he has pursued for 18 months.

Healthscope's first-half profit plunged 67% to $15.7 million, thanks to $21.4 million in costs associated with the failed $2.8 billion takeover attempt for Symbion.

Mr Dixon said he did not want to distract the company any further by getting involved in another fight for the assets.

But he expected "substantially" to recover the cost of its Symbion bid. Excluding the Symbion costs, Healthscope posted a 17% increase in interim profit to $37.1 million.

Revenue from Healthscope's hospitals rose 18% in the six months to December 31 to $79.9 million and sales from pathology increased 6.9% to $21.7 million.

Healthscope increased its first-half dividend by 1? to 9.5?, payable April 7. Healthscope shares rose almost 2% to $5.28.

Meanwhile, Primary Health Care shares had their biggest surge in more than three years, after it increased its stake in Symbion to 80% thanks to Healthscope's decision to give up the fight.

Primary shares jumped 41?, or 6.3%, to $6.91.

© 2008 The Age

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