8:00AM Blackstone Group is considering a bid for HCA.
Blackstone Group is reportedly considering a possible bid to top the $21.3 billion leveraged buyout of hospital chain HCA Inc. (HCA: chart) by a group of private equity firms, including Bain Capital, Kohlberg Kravis Roberts & Co. and Merrill Lynch & Co. Blackstone hasn't yet invited other private-equity firms to join any potential offer.

Terms of the agreement give Bain, KKR and Merrill the right to top any counteroffer. A second bidder would have to go through due diligence, which could cost $10 million to $20 million, without the certainty that a deal would be reached. According to a filing with the SEC, a breakup fee of $300 million is payable to Bain, KKR and Merrill if a rival bidder tops the current agreement. If Blackstone outbids the rival offer, a bidding war may start, driving up the price, but ultimately making the deal less profitable.

Experts say that paying a higher price for the health-care company would be hardly possible. Besides, the sector is subject to regulation and possible legislative action due to surging health-care costs. Some potential Blackstone partners also have antitrust concerns as a result of investments in other hospital operators.

The investment bankers representing Morgan Stanley and the Credit Suisse unit of Credit Suisse Group, plan to open a data room to let prospective bidders examine HCA data. Shares of HCA closed Tuesday at $49.25 on the Nymex, a discount to the $51-a-share price tag of the buyout deal announced Monday.