Wakefield fails in hospital shares bid

Listed company Wakefield Health is still interested in operating Tauranga's Grace Hospital - but its hands are tied.
Wakefield chief executive Andrew Blair said his company would evaluate its remaining options of being involved with the private hospital, which opened in Cheyne Rd, Oropi, at the end of 2007.
"We were there, initially, by invitation and it was always a friendly takeover," he said. Talks had been going on for 18 months.
Wakefield was "surprised" and "disappointed" to be told last week that a majority of shareholders in the controlling Norfolk Investments did not support a takeover.
The Wellington-based healthcare company had sweetened its offer for Norfolk's 60 per cent stake in Grace Hospital. The other 40 per cent is held indirectly by Southern Cross Hospitals.
Wakefield offered Norfolk, with more than 50 shareholders, $3.60 a share plus a special dividend of nearly 11c a share, valuing Norfolk at about $23 million.
The latest meeting of Norfolk shareholders did not pass the 50 per cent threshold needed for their board to waive a clause in the constitution and allow shares to be transferred to Wakefield.
It meant Wakefield, which already operates three private hospitals in the country, could not put its offer to the Norfolk shareholders.
Mr Blair said Wakefield had signed pre-bid acceptances for more than 62 per cent of the Norfolk shareholding.
"It's an unusual set of circumstances and we had a high degree of confidence that our offer would be accepted," he said. "Obviously one or two of the bigger shareholders had a change of heart. At least 12 per cent of the shareholding turned against us."
The chairman and acting chairman of Norfolk Investments were overseas and unavailable for comment.
Another Norfolk board member said no one was authorised to talk about the situation.
The Norfolk shareholders are mainly surgeons, anaesthetists, retired doctors and former staff.
John Calder, one of Norfolk's founding shareholders and a strong mover in the Grace Hospital development, is chairman of Wakefield Health and has stood aside during the takeover discussions because of the conflict of interest.
Mr Blair said Wakefield would maintain contact with Norfolk and might consider taking a smaller shareholding in Grace Hospital.
He said Wakefield had a clear advantage of being able to access capital and provide additional services to Grace Hospital.
The hospital recently completed a $3 million expansion of its radiology wing and installing new MRI and CT scanners.