AmSurg Withdraws Bid for Team Health After Rejection of Talksby
Team Health rejected latest proposal on Oct. 30, AmSurg says
AmSurg withdraws offer ahead of Tuesday 4 p.m. dealine
AmSurg, based in Nashville, Tennessee, had said earlier Monday it would withdraw its Oct. 24 proposal if Team Health hadn’t engaged in talks by Tuesday at 4 p.m. New York time.
The unsolicited cash-and-stock offer valued Team Health at at $69.32 a share and would have given holders of the company 0.768 AmSurg shares and $15.49 in cash for each Team Health share they own, AmSurg said in a statement Monday. That represented an additional $4 a share in cash over with AmSurg’s previous offer, which Team Health rejected Oct. 20. AmSurg’s earlier offer was for the same portion of stock and $11.49 in cash.
Team Health said in a statement Monday that its board rejected AmSurg’s sweetened offer because “the revised proposal was not in the best interest of Team Health and its stockholders.”
The transaction would have created the fifth-largest U.S. publicly traded health-services company. U.S. hospital networks and health insurers are consolidating to gain efficiencies of scale that are rewarded by the Patient Protection and Affordable Care Act, also known as Obamacare. While doctors’ groups have remained relatively small, they can cut costs and build negotiating power through mergers, said Christopher Holden, AmSurg’s chief executive officer.
AmSurg shares rose 6.3 percent to 74.50 at the close in New York. Team Health fell 3.8 percent to $57.42.