UPDATED: It’s been more than six weeks since Community Health Systems offered to buy competitor Health Management Associates for $7.4 billion and no other bidders have stepped forward.
HMA’s largest shareholder, Glenview Capital Management, called the takeover proposal a low-ball offer and spearheaded a shareholder vote to replace the HMA board with a slate of Glenview independent nominees tasked with getting a better price.
But it’s looking like the CHS offer is the best deal HMA can get, according to a Bloomberg report published today.
“No rival bidders have emerged, and analysts are forecasting a 16 percent profit drop when Health Management reports third-quarter results. That will boost the odds of Health Management investors voting for the deal, UBS AG said. Without the takeover, Health Management owners risk seeing the stock plunge as much as 37 percent, Susquehanna International Group LLP estimates. Shareholders should take the money and run because Health Management faces a challenging turnaround, according to CRT Capital Group LLC,” Bloomberg reported.
Naples, Fla.-based HMA is the parent company of Knoxville-based hospital operator Tennova Healthcare.
CHS is based in Franklin, Tenn.
The future of HMA is being closely watched by Tennova officials and could impact Tennova’s plans to build a new hospital on Middlebrook Pike in West Knoxville.
Click here for the Bloomberg report.
What a difference a year makes. The University of Tennessee’s full-time Master of Business Administration program is among the best MBA programs in the country, according to Bloomberg Businessweek’s recently released 2012 rankings.
UT’s program is No. 60 overall and No. 26 among U.S. public universities that offer full-time MBA programs.
Last year UT did not make the rankings.
“The Businessweek ranking recognizes the overall quality of our full-time MBA program and reflect’s the program’s contribution to the university’s goal of becoming a Top 25 institution,” Annette Ranft, associate dean for academic programs at the UT College of Business, said in a news release.
Here’s something you aren’t likely to hear from Republican presidential candidates – American energy independence is truly within reach. Good news doesn’t fit the campaign storyline so you can’t blame them for not touting achievements such as:
— U.S. oil production is the highest its been since 2003.
— Natural gas production is growing so fast the government may approve an export terminal.
— The U.S. could pass Russia as the world’s largest energy producer by 2020.
Here’s an interesting take from Bloomberg on how Internet shoppers have given a boost to the rail freight business.
And that includes companies like FedExs and UPS, which are using railroads to ship goods long distances before putting them on trucks.
“Railroad intermodal units, the containers and trailers often used for retail goods that can move by rail, road and sea, rose 4.7 percent in the week ended Dec. 3, the Association of American Railroads said today. That growth rate may increase in coming weeks as shippers such as FedEx Corp. (FDX) and United Parcel Service Inc. (UPS) use railroads for delivery of online purchases,” Bloomberg reported.
Amazon.com continues to attract the kind of publicity that most companies seek to avoid. From coast-to-coast, public voices are blasting the online retailer for its refusal to collect sales taxes.
Here are some recent excerpts.
Bloomberg: “There are lots of good reasons to shop online, but dodging sales taxes shouldn’t be one of them. Amazon.com Inc. (AMZN) is battling the authorities in its largest state market, California, over this principle. The good arguments are on the Golden State’s side.”
Concern about the global economy has Wall Street tumbling today, but not all the market news is quite so scary. Consider the profit expectations for aluminum maker Alcoa Inc.
Bloomberg says Alcoa, which has a large presence next door in Blount County, may report that its second quarter profit more than doubled on rising global demand. Alcoa is benefiting from the growth of companies like General Motors and Airbus.