Private equity firm Blackstone Group may try to trump a $21 billion agreed takeover of the No. 1 U.S. hospital chain HCA Inc. by a consortium of rivals, The Times newspaper reported Wednesday.
Preparations are at an early stage but Blackstone is thought to have been working on an offer for about two weeks, the newspaper said, citing sources close to the New York-based firm.
The Times said Blackstone remained interested in HCA, although it was not clear whether the private equity firm had arranged debt financing to help fund any deal.
The newspaper said Blackstone would need to partner other buyout groups to bid for HCA, adding that other firms, including Texas Pacific, are also thought to be considering bids for HCA.
A Blackstone spokesman in New York declined to comment on the newspaper report. An HCA spokesman was not immediately available to comment.
On Monday HCA said it agreed to be acquired by a consortium which includes Merrill Lynch Global Private Equity, Kohlberg Kravis Roberts (KKR) and Bain Capital in what would be one of the largest leveraged buyouts in history.
The group also includes the family of U.S. Senate Majority Leader Bill Frist, whose relatives founded HCA, and HCA’s current management.
Under the terms of the agreed deal, HCA would be acquired for $51 per share, a premium of about 18 percent to the company’s closing price last Tuesday, July 18, a day before first press reports of a potential deal. The group would also assume $11.7 billion in debt.
However, under Monday’s agreement with the buyout consortium, HCA may solicit superior proposals for 50 days and HCA said it would actively do so.
