Smith told the Tenet board in a letter Monday that the $7.25 per share cash offer "offer provides your shareholders a 69% premium to the unaffected stock price when we made public our initial proposal on Dec. 9, 2010, and is our best and final offer based on information currently available to us. It is time to move beyond lawsuits and rhetoric."
CHS has been defending itself against a federal complaint filed by Tenet, alleging that CHS overbilled Medicare by as much as $377 million.
On Dec. 9, 2010, CHS made public an offer to acquire Tenet for $6 per share, including $5 per share in cash and $1 per share in CHS stock. The offer was made in a letter to Tenet's board on Nov. 12, 2010, and rejected on Dec. 6, 2010. On Jan. 14, 2011, CHS told Tenet that it would nominate a full slate of 10 independent director nominees to wrest control of the board at its 2011 Annual Meeting. Tenet delayed the meeting until Nov. 3. On April 18, CHS amended its offer to $6 per share in cash, which Tenet rejected on April 22.
Tenet Board Rejects CHS Cash Offer
CHS, Subject of HHS Probe, Ups Tenet Cash Offer
Tenet Claims CHS Overbilled Medicare $377M
CHS Opens Another Defense of Medicare Admissions
CHS Defends Medicare Admissions Practices
CHS Board Shakeup Sought by Shareholders
CHS Asks Federal Judge to Toss Tenet Suit