Health and Healthcare
M&A Watch: The Good & Bad Of Tenet Getting Higher Buyout Price (THC, CYH)
Published:
Last Updated:
Tenet Healthcare Corporation (NYSE: THC) has good news and bad news this morning. Community Health Systems, Inc. (NYSE: CYH) has done what many expected by raising its buyout offer for Tenet. The company raised its offer to $7.25 per share from $6.00 in an all-cash offer.
Where the deal gets a bit convoluted is that this offer is “the best and final offer based on information currently available.”
Community Health also said that it if Tenet does not begin good-faith discussions for a merger by 6:00 PM EST on May 9, 2011, then this new offer will expire and the company will also withdraw its proposed nominees it wanted elected to Tenet’s Board of Directors.
This is now called a 69% premium to the unaffected stock price when Community Health made its offer public. What is interesting is that Tenet holders and M&A speculators had always treated this as though a higher price was coming. The current belief is that Tenet will reject this offer as well.
Tenet shares closed at $6.93 on Friday against a 52-week range of $3.92 to $7.70. The pre-market trading indication have Tenet shares down over 7% at $6.42 on more than 4 million shares. Community Health shares closed at $30.73 on Friday and we have yet to see any real moves in the shares.
JON C. OGG
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
