Despite being rebuffed and even sued by Tenet Healthcare Corp. (NYSE: THC), Community Health Systems (NYSE: CYH) has revived its bid to acquire the for-profit hospital chain, report Healthcare Finance News and the Associated Press.
CHS offered a $6 per share, all-cash offer to Tenet, worth approximately $3 billion. It made a similar offer in November that included cash and stock. Tenet had rejected that offer, claiming it grossly undervalued the company and wasn't in the best interest of either Tenet or its shareholders.
Dallas-based Tenet operates 49 hospitals in 11 states. Franklin, Tenn.-based CHS operates 130 hospitals in 29 states.
Tenet sued CHS in the U.S. District Court of Texas earlier this month, claiming CHS improperly billed Medicare in some instances, leading to inflated revenue, earnings and stock pricing. News of the lawsuit briefly depressed the stock prices of both CHS and Tenet.
Tenet did not reject the latest offer out of hand. Its board of directors said it would review the offer and have asked its shareholders to take no immediate action.
For more:
- read the Healthcare Finance News article
- read the Associated Press article