Tag Archives: takeover

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.

Health Management takeover talk heats up

Update:Glenview Capital says it is not engaged in a hostile takeover. The company issued the following statement in response to this post:

“Glenview Capital Management has filed a consent solicitation in which they have nominated a new independent, slate of directors for the board at HMA. But they have in no way initiated steps for a hostile takeover”

Shares of Health Management Associates, parent company of Knoxville-based Tennova Healthcare, hit a 52-week high today on continued takeover talk.

By late afternoon, shares were up more than 9 percent to $16.89 with 11.3 million shares traded.

The Naples, Fla.-based company is the subject of a hostile takeover by Glenview Capital Management, which has been increasing its stake in the company.

Glenview could soon have some competition. Reuters reported today that Franklin, Tenn.-based Community Health Systems Inc. and other companies also have target HMA.

HMA officials aren’t commenting on the takeover buzz.

Click here for more from Reuters.

Green Mountain merger target?

 

Is Green Mountain Coffee Roasters a merger target? If so, what does that mean for the company’s relatively new roasting and distribution plant in Knox County?

Green Mountain Coffee

Green Mountain Coffee

The maker of the Keurig single cup brewer system has seen its share price plunge from nearly $116 a few months ago to less than $18 today. As its stock has spiraled lower, talk of a takeover has increased.

Green Mountain expanded to Knoxville in 2008, investing millions in a distribution and production plant in Forks of the River Industrial Park, where it employs several hundred workers.

 

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Why China won’t take over U.S. banking system

If the Fed’s decision to allow a Chinese bank to buy a U.S. bank has you worried about a communist takeover of our entire banking system — stop worrying.

China isn’t about to “play a meaningful role in the U.S. any time soon,” according to a Forbes report.

Five Reasons China’s Banks Are Not Taking Over The U.S. Banking System

Forn those who prefer a paranoid view, here’s Michael Savage on the Fed’s decision.