Glenview Capital rejects HMA’s ‘hybrid’ offer

0115_kclo_tennova

Community Health Systems wants to buy peer company Health Management Associates, parent company of Knoxville-based Tennova Healthcare, but getting the deal done may not be easy.
Major HMA shareholder, Glenview Capita Management, opposes the CHS offer and continues to push for an overhaul of the HMA board.
Glenview, which has a 14.6 percent stake in HMA, on Tuesday turned down HMA’s offer “to immediately add” Glenview nominees to the board, including one who would serve as chairman.
Naples, Fla.-based HMA made the offer in a statement released late Tuesday.
In a strongly worded statement released shortly after HMA’s news release, Glenview  rejected what it called a “hybrid” board, saying HMA shareholders are already considering the proposal for a completely new board.
“It would be inappropriate for Glenview to take any action which would circumvent Shareholders’ rights in this consent solicitation,” Glenview said.
Franklin, Tenn.-based Community Health has offered to buy HMA for $3.9 billion, or $7.6 billion, including assumed debt.
Glenview Capital has called the CHS offer a starting point for getting greater value for HMA shareholders. How Glenview’s effort to revamp the HMA board will impact the CHS offer is uncertain. The purchase has been approved by the existing HMA board and the CHS board, but still must be approved by regulators and HMA shareholders.
Click here for the full HMA statement.
Click here for the full Glenview Capital statement.