FRESENIUS DECIDED against reviving its bid for German competitor Rhoen-Klinikum, capping more than four months of jockeying over the top spot in Germany’s hospital market.
Fresenius does not plan to submit a renewed offer for the time being, the company said in a statement yesterday. It now holds 5 per cent of Rhoen-Klinikum plus one share, Fresenius executives said in a conference call.
Fresenius was concerned that a renewed attempt would be complicated by rivals such as Asklepios Kliniken, which had also purchased stakes in the target, as well as by risks tied to gaining control of Rhoen’s supervisory board, people familiar with the situation said yesterday.
Buying Rhoen-Klinikum would have cemented the bigger company’s position in Germany’s private-hospital market as acquisition opportunities dwindle.
“Blocking our attempt seems to be the name of the game,” Ulf Mark Schneider, Fresenius’s chief executive said. Rhoen-Klinikum slumped 21 per cent to €14.985 in Frankfurt trading, the biggest drop since at least October 1998. Fresenius rose 2.4 per cent to €86.87. – (Bloomberg)
