HMA Moves to Block Takeover Attempt

John Commins, May 28, 2013

Health Management Associates has adopted a shareholders' rights plan to protect the hospital operator and its stockholders from efforts by Glenview Capital Management to obtain control of the company.

Health Management Associates, Inc. has launched a shareholders' rights plan that the investor-owned hospital chain says is needed to block a potential takeover.

In a Securities and Exchange Commission filing Friday Naples-based HMA said the board of directors adopted the rights plan to thwart efforts by Glenview Capital Management LLC to gain control.

"The rights agreement is intended to protect the Company and its stockholders from efforts to obtain control of the Company that the Board of Directors determines are not in the best interests of the Company and its stockholders, and to enable all stockholders to realize the long-term value of their investment in the Company," HMA said in the filing.

Glenview owns 14.56% interest in HMA common stock but filed a 13D filing with the SEC on May 6 suggesting that it would increase its ownership stake and "may engage in communications with relevant parties regarding the company and ways to enhance shareholder value, including, but not limited to, the Company's management, members of the board of directors, shareholders or other investors, potential strategic partners, financial advisers and other industry participants."

HMA noted in its filing on Friday that a Hart-Scott-Rodino Antitrust Improvement Acts was also filed on May 22 by affiliates of Glenview which "indicates that these affiliates presently intend to acquire, collectively, up to approximately $2.2 billion of the Corporation's outstanding common stock."

John Commins

John Commins is a senior editor at HealthLeaders Media.

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