By Kevin McCauley
Sard Verbinnen & Co. is guiding Community Health Systems and its $3.3B acquisition bid for smaller hospital operator Tenet Healthcare Corp., a deal that would create the nation’s largest chain.
The combination would forge a giant with revenues of $22B and 176 hospitals in 30 states.
CHS CEO Wayne Smith says the $6 per-share takeover price represents a 40 percent premium for Tenet’s shares. He believes the transaction would “enhance the operating efficiencies and best practices” of both companies in the era of federal overhaul of the healthcare sector.
Tenet CEO Trevor Fetter rejects the unsolicited offer as “inadequate” and has “serious concerns about CHS ability to integrate and operate a business like Tenet. He relies on Joele Frank, Wilkinson Brimmer Katcher for media work.
CHS says it is committed to working with Tenet’s board to cement a deal, but warns that is will “consider all necessary alternatives to do so.”
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