[euro]2.5bn auction for Swiss hospitals

Bidders for Hirslanden, the Swiss private hospital firm, have lodged first-round offers with its owner BC Partners, the London- based buyout giant. Rothschild, the bank handling the [euro]2.5bn ([pound]1.7bn) auction, has yet to decide when the second round will take place or which suitors it will allow into the final round.

Private equity companies Apax Partners and Cinven are understood to be among the potential buyers. Hirslanden is Switzerland's largest private hospital group, with 13 hospitals and six clinics. BC bought it for [pound]405m in 2002, so if it fetches anywhere near the price it is aiming for, it will be a huge payday. The buyout industry has invested aggressively in the healthcare sector, in the UK and Europe. Ageing populations and rising healthcare costs mean the sector is set for strong growth for the foreseeable future.

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