After Tenet Healthcare Corp. (NYSE: THC), on Monday, rejected a $7.25 per share cash offer from Community Health Systems (NYSE: CYH), the latter announced it was withdrawing its offer to "acquire all of the outstanding shares of common stock" of the former, likely bringing to a close a six-month battle between the two hospital chains. Community's offer was about 22 percent higher than its original proposal of $6 a share, made late last year.
"We believe that Community Health's latest proposal does not reflect our current financial position, our 2011 outlook and our positive future growth prospects," Tenet CEO Trevor Fetter said in a statement. "Our first quarter results provide compelling evidence that our positive earnings trajectory is gaining momentum, and the board and management team are confident that Tenet is on track to meet its financial and strategic objectives."
Along with rejecting the offer, Tenet embarked on a $400 million stock buyback program in an attempt to stave off a sag in share prices.