Community Health plans 10 nominees to Tenet board
Hospital operator Community Health Systems Inc. said Friday it will nominate 10 directors to the board of Tenet Healthcare Corp. as it continues to try to acquire the rival, which has rebuffed its $3 billion offer.
Community Health is trying to get more control of Tenet to try to get the company to accept the buyout bid. Tenet's entire board of directors is up for re-election at its annual meeting, and Community Health said it will submit a slate of 10 of its own nominees, plus four alternates. Earlier this month, Tenet delayed its annual meeting by about six months, to Nov. 4. The company said Friday that Community Health's offer price is inadequate and Tenet's own plans will deliver more value to its shareholders.
"We believe that Community Health has nominated its slate of director candidates only to advance its goal of acquiring Tenet at an inadequate price," Tenet said in a release.
Community Health, of Franklin, Tenn., went public on Dec. 9 with an offer to buy Tenet for $6 per share in cash and stock. That was a premium of 40 percent to the most recent closing price for Tenet shares. The bid was taken to the public after Tenet's board rejected it. Community Health later said it would propose nominees to the Dallas company's board.
Community Health's nominees are Thomas Boudreau, 59; Duke Bristow, 53; John Hornbeak, 63; Curtis Lane, 53; Douglas Linton, 63; Peter Rothschild, 55; John Sedor, 66; Steven Shulman, 59; Daniel Van Riper, 70, and David Wenstrup, 46. The alternate nominees are James Egan, 62; Jon Rotenstreich, 67; Gary Stein, 60; and Larry Yost, 72.
Tenet shares closed up 6 cents to $7.06 and Community Health shares picked up 13 cents to end at $37.91.