Tenet Healthcare has rejected Community Health Systems' revised all-cash bid, saying it "grossly undervalues" the company, according to a Tenet news release.
CHS' revised bid for the company stood at $6 per share in cash. In a statement, Tenet said the bid is the same price CHS previously proposed Nov. 12, 2010.
The previous Nov. 2010 offer Tenet refers to was for $5 per share in cash and $1 per share in CHS common stock.
In a letter to CHS CEO Wayne Smith, Tenet mentioned its pending lawsuit against CHS for alleged overbilling and said concerns regarding regulatory compliance could not be ignored when reviewing the proposal. "Since filing that suit, a decision our Board did not take lightly, we have grown even more concerned," Tenet said in the release.
Tenet also said it has never been opposed to a sale, but the company is not for sale "at a price that fails to remotely reflect the value inherent in its business."
Read the release on Tenet's rejection of Community Health's all-cash bid (pdf).
Read more about Tenet and Community Health:
- CHS Files Motion to Dismiss "Baseless" Tenet Lawsuit
- CHS Stock Dips After Receiving Subpoena
- CHS Still Wants Tenet: Revised All-Cash Offer Stands at $6 Per Stock
CHS' revised bid for the company stood at $6 per share in cash. In a statement, Tenet said the bid is the same price CHS previously proposed Nov. 12, 2010.
The previous Nov. 2010 offer Tenet refers to was for $5 per share in cash and $1 per share in CHS common stock.
In a letter to CHS CEO Wayne Smith, Tenet mentioned its pending lawsuit against CHS for alleged overbilling and said concerns regarding regulatory compliance could not be ignored when reviewing the proposal. "Since filing that suit, a decision our Board did not take lightly, we have grown even more concerned," Tenet said in the release.
Tenet also said it has never been opposed to a sale, but the company is not for sale "at a price that fails to remotely reflect the value inherent in its business."
Read the release on Tenet's rejection of Community Health's all-cash bid (pdf).
Read more about Tenet and Community Health:
- CHS Files Motion to Dismiss "Baseless" Tenet Lawsuit
- CHS Stock Dips After Receiving Subpoena
- CHS Still Wants Tenet: Revised All-Cash Offer Stands at $6 Per Stock