UPDATE 1-Australia's Healthscope gets $1.6 bln buyout offer

MELBOURNE, May 14 (Reuters) - Australian hospital operator Healthscope said it has received a $1.6 billion takeover approach from a group of buyout firms, sending its shares 21 percent higher and marking a return of big private equity deals to the market.

Healthscope did not name the bidders in the consortium and said it had yet to form a view on the takeover approach, which it described as indicative and non-binding.

'The Healthscope board...recommends shareholders take no action at this time,' the company said in a statement.

A spokeswoman for Healthscope declined to say when the company would make a further comment on the offer, which came on Thursday after the market closed.

The offer, at A$5.50 per share, values Healthscope at A$1.74 billion ($1.6 billion), and its shares jumped to a high of A$5.45. Shares last traded up 17.5 percent at A$5.29.

Private equity firms have been sidelined in terms of acquisitions in Australia for two years as the global financial crisis took its toll on the ability to borrow, and they are sitting on billions of dollars of untapped funds.

However, activity has picked up in recent weeks with two local private equity firms -- Pacific Equity Partners and CHAMP -- among the firms in the second round of bidding for pallet maker Loscam, sources told Reuters, in a deal that could be worth up to A$700 million.

Private equity industry sources on Friday ruled out firms KKR , CVC and Archer Capital as potential bidders for Healthscope. The sources declined to be named because of the sensitivity of the matter.

A report on the Australian Financial Review web site said there had been speculation that Blackstone Group had made an approach to Healthscope in the past two weeks, but said several sources denied it. Blackstone did not return a call seeking comment.

Healthscope itself was in talks to acquire an aged-care business, Arcare, in February for about A$200 million but abandoned the plan, reportedly after opposition from key shareholders.



(Reporting by Victoria Thieberger; editing by Ed Davies) (If you have a query or comment on this story, send an email to [e-mail]) Keywords: HEALTHSCOPE/ ([e-mail]; [phone]; Reuters Messaging: [e-mail]) 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.