Community Health ends effort to buy rival Tenet
Community Health Systems Inc. has ended its effort to buy competitor Tenet Healthcare Corp. after Tenet rejected its latest $4 billion-plus offer.
Franklin, Tenn.-based Community Health said Monday it withdrew its offer to buy Tenet for $7.25 per share. It has also rescinded its effort to put nominees on Tenet's board of directors.
Tenet shares fell 6 cents to $6.46 in pre-market trading Tuesday.
Community Health has been trying to acquire Tenet since late 2010. It originally made a bid of $6 per share for the Dallas company, and took the bid public after Tenet turned it down. Community Health raised its offer on May 2. The latest bid valued Tenet at about $4.06 billion.
Tenet also opposed the takeover offer efforts by adopting a "poison pill" stock dilution measure, delaying its annual meeting by six months, and filing a lawsuit that accused Community Health of defrauding Medicare.
Tenet said Monday that he latest offer was still too low. Community Health had said that bid would be its last offer.
Community Health runs about 130 hospitals in fast-growing and non-urban markets, while Tenet's 49 hospitals are in urban and suburban markets.