Fortis in advanced stage to acquire Manipal hospitals

Fortis Healthcare is understood to be in advanced stages of negotiations for acquiring a majority stake in South India's leading hospital chain Manipal Health Systems. 
 
If this deal materializes than it would bring operational synergies as Fortis is keen to expand in southern and western regions, while MHS has also been planning to spread its presence in North India. Manipal Health Systems has 18 hospitals mostly located in South India with a total capacity of 7,000 beds. It also manages around 55 primary healthcare centres. 
 
According to sources, both the sides were keen on the deal as Fortis has already announced around half a billion dollars expansion plan, which aims at having 40 hospitals by 2010. However at present both the parties have denied that they are in talks.