Is Community’s Hostile Bid for Tenet Worth the Price?
Nevertheless, Community will have to spend significant resources attacking Tenet's case. Even if it dropped the acquisition bid today and there are no signs it will, Community might have to spend a lot of money not only defending itself against Tenet's claims, but should the feds want to conduct their own investigation, that's a whole other problem to deal with. Tenet's also going to get a big bill for this war, win or lose.
We've yet to see a coordinated response from Community, which saw its stock drop from around $40 per share to around $25 Monday after news of the filing broke. It had recovered to around $32.50 by yesterday, but that big drop, should Tenet prove its case, will likely cause a flood of pesky shareholder lawsuits from its Community's own shareholders to recover that lost value.
You can be sure that Community's response to the complaint is coming. It'll be interesting reading, but if anyone is sure to get rich off this saga, you can bet many of them will have law degrees hanging in their offices. Because there's the price of acquisition, but there's an entirely different bill to pay when that acquisition is hostile.
Philip Betbeze is senior leadership editor with HealthLeaders Media.
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