It would appear there has been some movement as far as the Spire Healthcare sage – behind the scenes, in a situation where Hedge Funds / Professional Investors (not necessarily interchangeable, naming no names) continue to stalk the story.
The reason for this is the 29.9% Mediclinic stake in Spire of which Hospital Corporation of America is alleged to have interest. Clearly, when a company has a 29.9% stake in another historically one sees a deal eventually being made – as this is the point of going just under the mandatory 30% bid trigger. However, it is all in the timing.
The current position is said to be, and of course is only a rumour, that talks between HCA and Mediclinic have ended, something which suggests that the latter wanted more than the mooted 30% premium on the 360p a share they paid for Spire, versus around 340p now.
So what do we conclude? First Mediclinic clearly believes 470p plus is the real valuation of Spire, which will reassure bulls of Spire. Second, HCA presumably wanted to tie up the 29.9% of Spire before approaching its board.
Two For The Price Of One?
The alternatives now are to sit on its hands and let things cool off. Or simply go for an offer neither Mediclinic or Spire cannot refuse. One does not have to be a Champage swilling Mayfair “hedgie” to work out what this may be, higher than 470p.
But as stated in the last update, Spire shareholders should be feeling relatively smug, whether the rumour has substance, or not. In effect, this means Spire has two potential bidders, for the price of one.