Deals
Community Health’s Bid for Tenet May Prompt Rivals
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Community Health Systems Inc.’s unsolicited $3.3 billion offer for Tenet Healthcare Corp. may prompt rival suitors as it seeks to become the largest U.S. hospital operator. Tenet’s shares rose 55 percent.
Community Health’s bid of $6 a share, including $5 a share in cash and $1 per share in common stock, was rejected as “not remotely fair value” by Dallas-based Tenet. The equity offer of $3.3 billion would represent about a 40 percent premium over Tenet’s $4.29 closing price yesterday. Community Health also would take on about $4 billion of net debt, the Franklin, Tennessee-based company said yesterday in a statement.