Com­mu­nity, Tenet still at odds over un­so­licited buy­out of­fer

Modern Healthcare - - Late News -

Com­mu­nity Health Sys­tems and Tenet Health­care Corp. re­main at a stale­mate over Com­mu­nity’s un­so­licited of­fer to buy Tenet, as the CEOs of both com­pa­nies said dur­ing con­fer­ence calls. Both com­pa­nies also re­ported higher earn­ings for the fourth quar­ter. The board and man­age­ment of Dal­las-based Tenet con­tin­ues to be­lieve that Com­mu­nity’s $7.3 bil­lion of­fer, con­sist­ing of $3.3 bil­lion in stock and cash and as­sump­tion of $4 bil­lion in debt, grossly un­der­val­ues the com­pany, said Trevor Fet­ter, Tenet’s pres­i­dent and CEO. There have been no de­vel­op­ments in the sit­u­a­tion since Com­mu­nity an­nounced a slate of 10 direc­tors and four al­ter­nates Jan. 14. Fet­ter ac­knowl­edged an ef­fect on Tenet’s pur­suit of its own ac­qui­si­tions: “It’s not help­ful to have a cloud over the po­ten­tial own­er­ship of the com­pany when you’re do­ing that,” he said. Wayne Smith, chair­man, pres­i­dent and CEO of Com­mu­nity, said, “We’re look­ing for­ward to get­ting to the (ne­go­ti­at­ing) ta­ble with Tenet.” The Franklin, Tenn., com­pany can com­plete the Tenet deal and still con­tinue to make other ac­qui­si­tions, Smith added. Com­mu­nity re­cently agreed to ac­quire a three-hos­pi­tal sys­tem in north­east Penn­syl­va­nia from Catholic Health Part­ners, Cincin­nati. “The op­por­tu­ni­ties are there be­cause smaller providers are strug­gling. Our pipe­line is as deep as it’s ever been,” Smith said.

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