CHS Raises 'Best and Final' Cash Bid for Tenet
Calling it a "best and final offer," Community Health Systems, Inc. on Monday morning raised its all-cash bid to acquire all common stock of rival Tenet Healthcare Corp. to $7.25 per share – up from $6 per share – and gave the Tenet board one week to make a decision.
The deal will expire on May 9 if Tenet has not begun good-faith discussions, and Franklin, TN-based CHS said in a media release that it will withdraw its slate of nominees for the Tenet board, and end its six-month-long bitter and public hostile takeover attempt.
"We are making this offer to bring this matter to a prompt conclusion in the best interests of all concerned," Wayne T. Smith, chairman/president/CEO of CHS, said in a prepared statement. "We call on the Tenet Board to uphold its fiduciary duties and enter into good-faith discussions with us to conclude a mutually beneficial transaction. Unless we see meaningful engagement by May 9, 2011, we will withdraw the offer and move on to the many other compelling growth opportunities available to us."
Tenet issued a statement Monday morning confirming that it will review the new bid to "determine the course of action that it believes is in the best interests of the Company and its shareholders. Tenet’s shareholders are advised to take no action at this time pending the review of the revised proposal by the Tenet Board of Directors."