Global alternative asset investor Blackstone could reportedly double its initial investment in hospital operator Vanguard Health Systems after rival Tenet Healthcare offered to buy its shares at a 70 per cent premium.
Vanguard is valued at $1.8bn by Tenet’s $21-per-share offer, well up on the company’s June 21 closing price of $12.37, the FT reported.
The deal will be welcome news for Blackstone, which saw its portfolio company perform below expectations in its 2011 IPO by raising $450m.
Vanguard had initially filed to sell 25 million shares for between $21 and $23 each, but cut that back to $18 per share.
The Tenessee-based business has since grown from operating 16 hospitals to 28. Tenet already runs 51 hospitals in complementary locations, the FT said.
It added that Vanguard currently has about $2.5bn of debt.
Last week Blackstone became the second private equity firm to hire a former four-star general in a month after bringing former NATO supreme allied commander in Europe Wesley Clark on board.
Clark joined the board of directors of portfolio company Fisterra Energy, which develops large-scale independent power projects in Latin America, Europe and the Middle East.
Copyright © 2013 AltAssets