The Tenet response to the May 2 offer appears to confirm the end to any potential future negotiations: "We believe that the latest proposal fails to offer value sufficient to warrant discussions between Tenet and Community Health."
Another indication that negotiations with CHS may be a closed subject: The Tenet board has authorized the repurchase of up to $400 million of Tenet common stock. "Shares will be repurchased at times and amounts based on market conditions and other factors. The stock repurchase program may be modified, suspended or terminated at any time," the company said in a statement.
CHS and Tenet have been embroiled in a bitter takeover battle since November 2010. The saga's highlights include:
- On Nov. 12, in a letter to Tenet's board CHS offered to acquire Tenet for $6 per share, including $5 per share in cash and $1 per share in CHS common stock.
- The Tenet board rejected the CHS offer on Dec. 6.
- On Jan. 14, 2011, CHS notified Tenet of its intention to nominate a full slate of 10 independent directors for election to Tenet's board at its November 2011 annual meeting.
- On April 11, Tenet filed a federal complaint alleging that CHS overbilled Medicare by as much as $377 million.
- On April 18, CHS amended its offer for Tenet to $6 per share in cash
- On April 20, CHS asked a federal judge in Dallas to throw out Tenet's "baseless lawsuit"
- The Tenet board rejected the offer on April 22.
- On May 2, CHS amended its offer for Tenet to $7.25 per share cash and set a May 9 deadline for a Tenet response.
- The Tenet board rejected the CHS offer on May 9.
Margaret Dick Tocknell is a reporter/editor with HealthLeaders Media.