Tag Archives: hedge fund

Glenview Capital ignores HMA offer

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The battle for control of Health Management Associates, parent company of Knoxville-based Tennova Healthcare, continues to be interesting corporate theater.
After initially saying no thanks, hospital operator HMA now says it will accept all eight of the new board members nominated by its largest shareholder, hedge fund Glenview Capital Management, “as long as the hedge fund is willing to retain two or three current directors,” according to the Wall Street Journal.
The hedge fund run by investment guru Larry Robbins can even name the chairman, Naples, Fla.-based HMA said.
Glenview wasn’t impressed by the offer.
In a statement released Friday morning, Glenview trumpeted a report by corporate governance analyst Institutional Shareholder Services Inc., but mentioned nothing about the HMA offer.
The ISS report supports complete replacement of the existing HMA board.
“We appreciate that ISS is part of the broad and growing chorus of voices calling for complete change at HMA, and we believe ISS’s conclusions reflect not only HMA’s historical shortcomings but more importantly reflect the skill, sincerity, preparation and thoughtful approach of the eight nominees,” Glenview said.
Also interesting is that Glenview Capital holds major stakes in both HMA and Community Health Systems, the Franklin, Tenn.-based company that has offered to buy HMA for $3.9 billion.
Glenview is the largest HMA shareholder with a 14.6 percent stake and Glenview owns about 9.5 percent of CHS, making it the largest CHS shareholder.
Click here for The Wall Street Journal story.
Click here for HMA’s statement on the ISS report.