Tenet Board Rejects CHS Cash Offer
Also Friday, CHS issued a statement saying it was "disappointed that the Tenet Board of Directors rejected our all-cash offer and refuses to engage with us. Instead of focusing on creating shareholder value, the Tenet Board elected to bring an irresponsible lawsuit. Despite the Board's strategy of entrenchment, we remain ready to engage in constructive discussions to move this transaction forward. We would welcome the opportunity to review additional information Tenet can provide and are prepared to recognize any additional value it can demonstrate."
In their letter to Smith, Fetter and Kangas said the Tenet board "could not ignore the concerns regarding disclosure and regulatory compliance that we raised in the lawsuit Tenet filed against Community Health on April 11. Since filing that suit, a decision our Board did not take lightly, we have grown even more concerned. Although Community Health characterized our claims as "baseless" in its press release of April 11, Community Health subsequently disclosed that the Office of the Inspector General of the U.S. Department of Health and Human Services issued a subpoena in March 2011, and that this subpoena was similar in scope to one previously issued by the Attorney General of the State of Texas in November 2010."
Fetter and Kangas also reiterated what they called their "serious concerns about Community Health's ability to consummate the current proposal, let alone a proposal at a value our Board would consider as a basis for entering into discussions."
John Commins is a senior editor with HealthLeaders Media.
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