Naples, Fla.-based Health Management Associates announced it is working with two companies — banking firm Morgan Stanley and law firm Weil, Gotshal & Manges — in light of Glenview Capital Management's latest maneuver.
Glenview is the largest shareholder of the for-profit, publicly traded Health Management, owning roughly 14.6 percent of all Health Management shares. This week, Glenview executives filed documents in which it "urged" Health Management to throw out or amend its recently ratified "poison pill," which is a plan that prevents the hostile takeover of a publicly traded company by a large shareholder.
In May, Health Management approved the poison pill, which included a 15 percent trigger, meaning if any shareholder acquired an ownership stake of 15 percent or higher, other shareholders would be protected and could potentially buy new shares for a steep discount.
Health Management's terse news release said it is working with Morgan Stanley and Weil, Gotshal & Manges to consider "strategic alternatives," though clarification of those alternatives was not provided. For the past couple weeks, many financial analysts have said the string of events could lead to another for-profit hospital company or a private equity firm taking over Health Management.
Health Management also announced it has begun a formal search to replace outgoing CEO Gary Newsome, who is retiring effective July 31.
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