Rhoen Klinikum May Decline After Fresenius Offer Fails

Rhoen Klinikum AG (RHK) fell the most in two weeks after lowering its net-income forecast because of a slowdown in the restructuring of a German hospital unit and costs from Fresenius SE’s failed takeover bid for the company.

Rhoen Klinikum dropped as much as 2.8 percent to 17.35 euros, the biggest intraday decline since July 12, and was trading down 1.4 percent at 9:51 a.m. in Frankfurt. That pared the stock’s gain this year to 20 percent.

Profit will be 117 million euros ($143.7 million) in 2012 and earnings before interest, tax, depreciation and amortization will be 315 million euros, with both forecasts subject to a variation of plus or minus 5 percent, the Bad Neustadt an der Saale, Germany-based hospital operator said in a statement today. Analysts surveyed by Bloomberg predict net income of 144 million euros and Ebitda of 341.6 million euros, on average.

Sales will amount to 2.85 billion euros, plus or minus 2.5 percent, in line with a previous forecast, the company said. Rhoen Klinikum previously predicted 2012 profit of 145 million euros and Ebitda of 350 million euros.

Reorganization at the University Hospital Giessen & Marburg has slowed, “which is why its trend in earnings of late has been lagging well behind expectations,” Rhoen Klinikum said. Higher wage increases in the hospital industry and a “steady deterioration in prices” also are hurting profit, the company said.

The 3.1 billion-euro acquisition offer by Fresenius led to costs in the several million euros for consulting fees, Rhoen Klinikum said.

Fresenius said on June 29 that another hospital operator, Asklepios Kliniken GmbH, took a 5 percent stake in Rhoen Klinikum, triggering trading on June 27 that interfered with acceptance and settlement of the offer. About 84 percent of Rhoen Klinikum shares were tendered, and the 22.50-euro-a-share offer was contingent on winning at least 90 percent of the stock, Bad Homburg, Germany-based Fresenius said.

Combining Fresenius’s Helios hospital unit with Rhoen Klinikum would have cemented Helios’s position atop the German market, leaving Asklepios as the second-biggest operator.

To contact the reporter on this story: Phil Serafino at pserafino@bloomberg.net

To contact the editor responsible for this story: Phil Serafino at pserafino@bloomberg.net

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