German health-care company Fresenius SE & Co. KGaA (FRE.XE,
FSNUY) said Friday its takeover bid of 3.1 billion euros ($3.9
billion) for clinic operator Rhoen-Klinikum AG (RHK.XE, RKAGY)
failed, after too few shares were tendered to reach the
90%-plus-one-share threshold by this week's deadline.
Fresenius said 84.3% of Rhoen-Klinikum shares were tendered. In
the deal, Fresenius aimed to merge Rhoen-Klinikum with its hospital
unit Helios, which would have created the largest hospital operator
in Germany with EUR6 billion in revenue. According to Fresenius,
the combined market share would have been about 8% of the total
EUR77 billion German hospital market.
"We remain convinced of the merits of combining Rhoen-Klinikum
with Helios, and will assess our options in the coming days," the
company said.
The deal was expected to fail after Asklepios Kliniken GmbH said
Wednesday it increased its stake in Rhoen-Klinikum to 5.01%,
greatly diminishing Fresenius's chance of reaching the threshold.
Asklepios, a privately held medical-care company, said it will keep
its options open regarding Rhoen-Klinikum but considers itself "a
long-term oriented company."
Fresenius said Asklepios's purchase of a stake in Rhoen-Klinikum
disrupted its offer. "We very much regret that the proposed
transaction was blocked, without providing a constructive
alternative," it said.
In addition to hospital operations, Fresenius is also active in
biotechnology, infusion therapy and nutrition, spas and health-care
centers. It is the main shareholder in Fresenius Medical Care AG
& Co. KGaA (FMS, FME.XE), a provider of products and services
for patients with kidney failure.
Fresenius announced its offer of EUR22.50 per share April 26,
and the tender period began May 18. Despite setting a high bar for
90% acceptance, Fresenius was confident at first, garnering the
support of Rhoen-Klinikum's executive and supervisory boards in
May. The offer expired Wednesday.
Fresenius conducted a capital increase in May ahead of the
expected takeover. "Fresenius will use the additional financial
resources over the medium term to complement its strong organic
growth with targeted acquisitions," it said Friday.
Write to Sarah Sloat at sarah.sloat@dowjones.com