Fight to Replace HMA Board Continues as Buyer Steps Forward
By moving forward with its original plans, Skolnick says Glenview is "keeping its options open." If it is successful in getting a new board elected, then Glenview could press shareholders to reject the CHS offer in favor of letting the new board negotiate for what could be a better deal. In its press statement, Glenview officials say the CHS proposal "establishes an important floor value" for HMA shareholders to evaluate.
"As the sitting board has entered into a sale agreement concurrent with management vacancy, disappointing results, and a reduced outlook, it is difficult to assess whether the value offered… represents full and fair value or the price offered by an opportunistic acquirer to a distressed seller."
In addition, continuing its efforts to put a new board in place, Glenview wants to bring in Alvarez & Marsel, a consulting firm which specializes in turnaround and interim management, performance improvement, and business advisory services.
A&M would be tasked with strengthening the floor value of the CHS proposal, identifying areas of operational compliance and financial improvement, enhancing current regulatory and compliance efforts, providing long-term financial forecasts, and investigating and presenting alternative proposals to the CHS acquisition.
CHS declined comment on the Glenview action.
Margaret Dick Tocknell is a reporter/editor with HealthLeaders Media.
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