Earlier this week Community Health Systems offered its third and supposedly final offer to acquire Tenet Healthcare Corp. at $7.25 per share, but analysts say the offer won't likely be enough to woo Tenet into a sale, according to a Bloomberg report.
The latest offer is valued at $7.3 billion including net debt, or 7.4 times earnings before interest, taxes, depreciation and amortization, according to data compiled by Bloomberg.
An offer of 7.4 times EBITDA would be the "cheapest hospital acquisition since 2003," according to the report. For hospital acquisitions greater than $500 million, the median is 9.3 times EBITDA, according to the analysis.
CHS called its latest offer it's "best and final offer," and analysts have said the deal is unlikely to move forward if CHS holds true to its word. Some analysts cited in the report say Tenet may now be courted by HCA and private equity firms.
Tenet has not yet officially responded to CHS' latest offer.
Read the Bloomberg report on CHS and Tenet.
Related articles on CHS and Tenet:
CHS Makes "Best and Final Offer" For Tenet at $7.25 Per Share
CHS Files Motion to Dismiss "Baseless" Tenet Lawsuit
Tenet Sues CHS: New Battle Lines in Healthcare Takeovers — Whistleblowing
The latest offer is valued at $7.3 billion including net debt, or 7.4 times earnings before interest, taxes, depreciation and amortization, according to data compiled by Bloomberg.
An offer of 7.4 times EBITDA would be the "cheapest hospital acquisition since 2003," according to the report. For hospital acquisitions greater than $500 million, the median is 9.3 times EBITDA, according to the analysis.
CHS called its latest offer it's "best and final offer," and analysts have said the deal is unlikely to move forward if CHS holds true to its word. Some analysts cited in the report say Tenet may now be courted by HCA and private equity firms.
Tenet has not yet officially responded to CHS' latest offer.
Read the Bloomberg report on CHS and Tenet.
Related articles on CHS and Tenet:
CHS Makes "Best and Final Offer" For Tenet at $7.25 Per Share
CHS Files Motion to Dismiss "Baseless" Tenet Lawsuit
Tenet Sues CHS: New Battle Lines in Healthcare Takeovers — Whistleblowing