AUSTRALIA'S NIB DROPS BID FOR HEALTH INSURER GMHBA

Australian private health insurer NIB Holdings Ltd (nib, ASX:NHF) has withdrawn its failed bid for Geelong-based health insurer GMHBA and says it will reassess its surplus capital in early 2011.

Nib on Wednesday said it had withdrawn its revised $A180 million (US$176.78 million) proposal for the health insurer after GMHBA's board rejected the bid.

Nib's managing director Mark Fitzgibbon said in a statement that the decision of GMHBA's board would not stop the pace of industry consolidation and that nib would play a significant and ongoing role in the private health insurance sector.

He reiterated that nib was "extremely disappointed" that GMHBA's board had not allowed shareholders to vote on the offer.

He also reiterated that nib would continue to explore merger and acquisition opportunities and would reassess its surplus capital position early in calender 2011.

GMHBA rejected nib's proposal in October, saying it was neither compelling nor in the best interests of its members.