SYDNEY - Australian pathology firm Symbion Health rebuffed a takeover approach from smaller rival Primary Health Care yesterday, saying the indicative offer was below its recent share price.
Symbion shares rose 9 per cent to five-year highs after Primary paid over A$120 million ($135 million) for a 5.25per cent stake in its rival and had made a "confidential" proposal.
"The proposal is incomplete, non-binding and has an indicative value which is at a significant discount to Symbion Health's recent trading prices," Symbion said adding the proposal had not progressed.
Shares in Symbion (valued at A$2.5 billion) were 7.24 per cent firmer at A$4.15 while Primary (valued at A$ 1.6 billion) was up 0.4 per cent to A$13.25.
Consolidation has been expected in Australia's health care sector, particularly in pathology, diagnostic imaging, medical services and generic drugs.
