Tenet Rejects Community Health’s ‘Best And Final’ Offer
That rejection marked the third since Community Health offered its first unsolicited bid in December.
The Associated Press: Tenet Rejects Higher Community Health Offer
Hospital operator Tenet Healthcare Corp. on Monday rejected Community Health Systems Inc.'s latest buyout offer, which had been increased by about 21 percent. Community's latest offer had been set to expire Monday and had said the latest proposal represented its final offer. Tenet says the offer still undervalues the company. On May 2, Community Health made the increase offer of $4.06 billion, or $7.25 per share in cash. Tenet had already rejected Community Health's $6 per-share offer last month. The companies have been fighting over a deal since last fall. The dispute has since spilled into federal court (5/9).
Bloomberg: Community Health Drops $7.3 Billion Bid for Tenet After Third Rejection
Tenet's refusal earlier yesterday to negotiate marked the third time its board rebuffed Community Health, turning down unsolicited bids in December for $6 a share in cash and stock and an all-cash offer in April. On May 2, Community Health raised its "best and final" offer 21 percent to $7.25 a share and said it would walk away from its effort if Tenet failed to begin "good-faith discussions." Tenet has said since December that the offers undervalued the company, and analysts have told Bloomberg that Tenet should be trading at more than $9 a share (Wechsler and Nussbaum, 5/10).