If the Tenet Board were to accept the offer then the combined group would stand to be the largest for profit hospital company in the US, behind HCA. The offer went public after the board at Tenet rejected the bid amount earlier this week.
What is also interesting is the comment in this article stating that Community could go hostile on the take over if Tenet continues to reject their offer and it has the support of the Community Board so I guess they mean real business. Community Health systems has over 12 billion in revenue and has $243 Million in profit last year, not a big percentage based on what came in. BD
From the website:
“Community Health Systems, Inc. is one of the leading operators of general acute care hospitals. The organization's affiliates own,operate or lease 126 hospitals in 29 states, with an aggregate of approximately 19,400 licensed beds. In 65 percent of the markets served, CHS-affiliated hospitals are the sole provider of healthcare services.”
Community Health Systems on Thursday unveiled a $3.3 billion unsolicited offer for a smaller rival, Tenet Healthcare Systems, in an effort to become a new leader in the for-profit hospital sector.
The offer by C.H.S., the biggest publicly traded for-profit hospital company, is the latest in a wave of deals across the health-care spectrum. Analysts and deal-makers have said that new regulations would help spur consolidation in a variety of health-related industries.
Under the terms of the offer, C.H.S. would pay $6 a share, comprised of $5 a share in cash and $1 a share in stock. The price represents a roughly 40 percent premium to Tenet’s Thursday closing share price of $4.29.