Tag Archives: Health Managsment Associates

CHS offer may be best Health Management Associates can expect

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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.