PHILADELPHIA, May 16 (Reuters) - Mental health facilities operator Psychiatric Solutions Inc is close to a deal to be acquired by Universal Health Services Inc, a source familiar with the situation said on Sunday.
Hospital operator Universal Health is expected to pay between $33 and $34 a share, the source said. Psychiatric Solutions closed at $32.63 on Friday on Nasdaq.
Psychiatric Solutions has a current market capitalization of about $1.87 billion.
A deal could still fail to emerge or a rival bidder could submit a new offer, said the source, who declined to be identified because he was not authorized to speak to the media.
The board of Psychiatric Solutions has not yet approved a deal, the source said.
Psychiatric Solutions had previously been in talks with private equity firm Bain Capital, but Bain cooled on the prospect of a deal, the source said. Bain could still come back with a new offer, the source.
Bain, Psychiatric Solutions and Universal Health could not be immediately reached for comment.
(Reporting by Jessica Hall; Editing by Jan Paschal)
(For more M&A news and our DealZone blog, go to http://www.reuters.com/investing/news/mergers) Keywords: PSYCHIATRICSOLUTIONS/ (jessica.hall@thomsonreuters.com; 215-922-1086; Reuters Messaging: jessica.hall.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Hospital operator Universal Health is expected to pay between $33 and $34 a share, the source said. Psychiatric Solutions closed at $32.63 on Friday on Nasdaq.
Psychiatric Solutions has a current market capitalization of about $1.87 billion.
A deal could still fail to emerge or a rival bidder could submit a new offer, said the source, who declined to be identified because he was not authorized to speak to the media.
The board of Psychiatric Solutions has not yet approved a deal, the source said.
Psychiatric Solutions had previously been in talks with private equity firm Bain Capital, but Bain cooled on the prospect of a deal, the source said. Bain could still come back with a new offer, the source.
Bain, Psychiatric Solutions and Universal Health could not be immediately reached for comment.
(Reporting by Jessica Hall; Editing by Jan Paschal)
(For more M&A news and our DealZone blog, go to http://www.reuters.com/investing/news/mergers) Keywords: PSYCHIATRICSOLUTIONS/ (jessica.hall@thomsonreuters.com; 215-922-1086; Reuters Messaging: jessica.hall.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.