UPDATE 1-Towerbrook approaches Southern Cross; shares soar

* Private-equity firm considering offer for care homes group

* Southern Cross says not willing to enter discussions

* Shares in Southern Cross up as much as 64 percent

(Adds detail, Southern Cross response)

LONDON, Aug 27 (BestGrowthStock) – Private-equity firm Towerbrook
Capital said on Friday it had made an indicative offer to buy
care-homes operator Southern Cross Health Care Group (SCHE.L: ),
sending shares in the British company up as much as 64 percent.
Towerbrook said in a statement on Friday it was considering
whether to make an offer for the company.

Southern Cross, which has been hit hard by cuts to public
spending, said it was working with advisers on its future
strategy.

“Accordingly, the Board of Southern Cross has informed
Towerbrook that it does not wish to enter into discussions at
this time,” it said in a statement.

Southern Cross has been affected by cash-strapped local
authorities reducing admissions to care homes, leading it to
issue a profit warning, its second of the year, on Aug 9.
[ID:nLDE67808W]

It shares, which have fallen 86 percent since the start of
the year, were up 53 percent at 28 pence at 1310 GMT, valuing
the company at about 53 million pounds.

Towerbrook, which is based in London and New York, declined
to comment further.

Towerbrook specialises in buying and turning around
underperforming companies in North America and Europe. Its
portfolio includes French carparts maker Autodistribution Group
and women’s footwear maker Jimmy Choo.
(Reporting by Paul Sandle and Simon Meads; Editing by Will
Waterman)

UPDATE 1-Towerbrook approaches Southern Cross; shares soar