Advertisement

THE OPINION: Analysts say Community Health Systems Inc.'s $3 billion offer for Tenet Healthcare Corp. is too low but might inspire other suitors to start a bidding war.

DEAL DETAILS: Community Health has offered $5 in cash and $1 in stock per Tenet share, marking a 40 percent premium to Tenet's last closing price. Including assumed debt, the company values the deal at about $7.3 billion.

CONCERNS: Analysts — and Tenet — say the offer undervalues the hospital operator, which has invested heavily in information technology and also has a broad real estate portfolio. Some also question debt levels Community Health will take on for the deal.

Advertisement
Advertisement