The Wall Street Journal-20080213-Primary Acquires Symbion

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Primary Acquires Symbion

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SYDNEY -- Primary Health Care Ltd. has gained control of Symbion Health Ltd., ending a 15-month battle for Australia's largest health- care company. It plans to launch a 1.2 billion Australian dollar (US$1.08 billion) rights issue today to help fund the acquisition, according to a person familiar with the situation.

Primary, Australia's second-largest medical-center operator, was expected to declare its A$2.65 billion offer for Symbion unconditional soon after it obtained more than 50% of shares in the company. In a statement to the Australian Stock Exchange yesterday, Primary said it had relevant interest in 52.27% of Symbion stock.

Controlling Symbion will give Primary one-third of Australia's pathology-services market, make the company Australia's largest private medical-center operator and help it expand beyond its New South Wales state market.

Investors said the entitlement offer, underwritten by Credit Suisse, ABN Amro Rothschild and Deutsche Bank AG, is likely to be well supported.

"Once they announce what the structure of the rights is, that will take some of the uncertainty out of the market and you'll start seeing some buying after that," said Michael Birch, portfolio manager at Wallace Funds Management, which holds Primary shares.