A shareholder has filed a lawsuit against Tenet Healthcare for refusing a $7.3 billion offer by Community Health Systems to buy the Dallas-based system, according to a report by the St. Louis Business Journal.
The lawsuit, filed by shareholder Max Katz both individually and on behalf of other shareholders, alleges Tenet board members breached their fiduciary obligations to shareholders by rejecting Community Health's offer and not exploring other opportunities with the Franklin, Tenn.-based suitor.
When Tenet rejected the offer, the company said it was "not in the best interests of Tenet or its shareholders," adding that the Tenet board "has serious concerns about Community Health’s ability to integrate and operate a business like Tenet."
Community Health's bid provided a 40 percent premium over Tenet's stock price on the day the bid was made public, but some analysts believe Community Health's bid is too low and other companies may offer more.
Read the St. Louis Business Journal report on Tenet.
Read more coverage of Community Health's bid to take over Tenet:
- Community Health Prepares For Hostile Takeover of Tenet
- CHS Still Committed to Acquiring Tenet
- Tenet Rejects $3.3B Bid From Community Health Systems
The lawsuit, filed by shareholder Max Katz both individually and on behalf of other shareholders, alleges Tenet board members breached their fiduciary obligations to shareholders by rejecting Community Health's offer and not exploring other opportunities with the Franklin, Tenn.-based suitor.
When Tenet rejected the offer, the company said it was "not in the best interests of Tenet or its shareholders," adding that the Tenet board "has serious concerns about Community Health’s ability to integrate and operate a business like Tenet."
Community Health's bid provided a 40 percent premium over Tenet's stock price on the day the bid was made public, but some analysts believe Community Health's bid is too low and other companies may offer more.
Read the St. Louis Business Journal report on Tenet.
Read more coverage of Community Health's bid to take over Tenet:
- Community Health Prepares For Hostile Takeover of Tenet
- CHS Still Committed to Acquiring Tenet
- Tenet Rejects $3.3B Bid From Community Health Systems