UPDATE 1-Transcend Services offers to buy bankrupt rival Spheris
* Transcend offers $78.3 mln for Spheris
* Spheris earlier agreed to sell co to MedQuist for $75.3 mln
* Auction set for April 13
* Transcend to close deal by mid to late April if it wins
* Transcend says borrowed $65 mln to fund deal
April 9 (Reuters) - Medical transcription company Transcend Services Co TRCR.O said it has submitted a bid of about $78.25 million to acquire bankrupt rival Spheris Inc.
Spheris Inc filed for Chapter 11 protection in February and had agreed to sell its U.S. business to MedQuist Inc, its largest competitor, for $75.25 million.[ID:nN03174828]
"All qualified bidders will be able to participate in an auction of substantially all of the assets of Spheris and the stock of its subsidiary on April 13, 2010," Transcend said in a statement.
Transcend said it expects the deal to close by mid to late April if it emerges as the successful bidder at the court supervised auction.
"A portion of the financing for the potential transaction is expected to come from a new four-year, $65 million senior secured credit facility," Transcend added.
Spheris employs 4,200 medical language specialists, with 1,900 of them in India. Its indian operations were not included in the bankruptcy filing.
The case is In re Spheris Inc et al, U.S. Bankruptcy Court, District of Delaware, No. 10-10352. (Reporting by Santosh Nadgir in Bangalore; Editing by Jarshad Kakkrakandy)
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