The Ramsay Health Care Limited (ASX: RHC) share price is starting the week in the red.
In morning trade, the private hospital operator's shares are down 7% to a two-year low of $56.10.
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What's going on with the Ramsay share price?
The Ramsay share price has come under pressure on Monday after the company released an update on takeover talks with a consortium of financial investors led by KKR.
As a reminder, earlier this month Ramsay received correspondence from KKR regarding its conditional, non-binding, indicative proposal to acquire Ramsay by way of a scheme of arrangement.
That correspondence noted that the consortium was not in a position to improve the terms of the alternative proposal. Furthermore, it highlighted that the information provided in Ramsay's FY 2022 results implied that there was meaningful downward pressure on the valuation proposed under the alternative proposal.
According to today's update, since the receipt of this correspondence, Ramsay and its financial advisers have engaged with the consortium and its advisers in an effort to understand whether a new proposal could be put forward that would provide appropriate value for shareholders and be able to be implemented in a reasonable timeframe.
However, as you might have guessed from the Ramsay share price performance today, it has become apparent to the company that the consortium is unable to provide a new proposal at this time.
As a result, the two parties have mutually agreed to terminate discussions.
Ramsay will now focus on driving its strategy to be a leading integrated healthcare provider of the future and the creation of long-term value for shareholders. The company intends to provide a business update in November.
