The Medibank Private Ltd (ASX: MPL) share price is in the green today despite talk its bid for day hospital operator Cura Group, has fallen through.
Previously, it was reported the private health insurer might have been gearing up to release news of the acquisition in time for its half year results – set to drop next Friday.
At the time of writing, the Medibank share price is $3.23, 0.78% higher than its previous close.
For comparison, the S&P/ASX 200 Index (ASX: XJO) has slipped 0.8% this morning.
Let’s take a look at the latest rumours surrounding Medibank.
Medibank‘s rumoured acquisition falls through
The Medibank share price appears unfazed by rumours its acquisition of private day hospital asset Cura has failed.
The private insurer was previously reported to have agreed to buy a stake in the business for an undetermined amount.
However, The Australian today reported the deal has been abandoned prior to settling.
Cura owns day hospitals in every Australian state and in the Australian Capital Territory (ACT).
Its crown jewels include Barton Private Hospital, Sydney Day Surgery Prince Alfred, and Somerset Private Hospital.
According to the publication, while the proposed acquisition’s cost was unknown, when Fresenius Medical Care purchased its majority holding in Cura – reported to be 70% – in 2017, it valued the hospital operator at $400 million.
While the publication didn’t confirm how big of a stake in Cura that Medibank was rumoured to be purchasing, Fresenius Medical Care hit back at initial reports it was offloading any of its stake. The company said:
Fresenius Medical Care is strongly committed to long-term ownership and continues to be deeply invested in growing the Cura Day Hospitals business. There is no plan to change this approach in the foreseeable future.
Medibank share price snapshot
While it’s gaining today, this year so far has been rough on the Medibank share price.
It has fallen 5% since the start of 2022.
Though, it’s currently 14% higher than it was this time last year.
The post Medibank (ASX:MPL) share price lifts despite rumours of failed hospital bid appeared first on The Motley Fool Australia.
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More reading
- Sweet dreams: ASX 200 shares that have provided big returns without the worry
- Could this give Medibank (ASX:MPL) shares a boost during earnings season?
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- How do Medibank (ASX:MPL) dividends compare to NIB?
Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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