A shareholder rebellion could jeopardise Australian healthcare firm Ramsay Healthcare’s £1bn takeover of private healthcare provider Spire.
The deal, agreed by both boards late last month, would create a combined operator of more than 80 private hospitals and clinics across the UK.
At the time, Ramsay revealed it planned to engage with the competition regulator on the deal and noted that as part of the process it may be required to sell certain hospitals or clinics.
But Sky News reports the deal faces opposition from investor Fidelity International, which said it would vote against the deal.
Alex Wright, portfolio manager of Fidelity Special Situations Fund, told Sky News that the deal “materially undervalues the shares, and Fidelity International will not be accepting the bid at this level”.
And according to Sky News, Toscafund Asset Management, which owns 5.4% of Spire’s shares, has also urged fellow investors to reject the deal, with a Toscafund spokesperson saying that it was “clear that the Spire share price would trade comfortably over 240p within the next 12 months”.
A spokesperson for Spire said the provider would not be commenting further. Ramsay Healthcare has also been approached for comment.
