Community Health Systems (NYSE: CYH) and Tenet Healthcare (NYSE: THC) are at it again. Last Friday, they engaged in a battle of dueling press releases.
First, CHS recommended a list of directors for Tenet's board and offered its spin on Tenet's recent behavior. Rejecting CHS' 40 percent premium offer, installing a "poison pill" and delaying the 2011 annual meeting six months, until November, instead of beginning discussions with CHS, "Tenet's highly paid board has clearly demonstrated its entrenchment," CHS' press release said. "Tenet shareholders deserve better."
Tenet shot back with a press release saying that it looked like CHS had nominated its slate of director candidates to "advance its goal of acquiring Tenet at an inadequate price."
CHS's suggested list of directors for Tenet was heavier on banking and pharma veterans than hospital executives, the Wall Street Journal reports. It's possible CHS would like Tenet's directors to be more independent. Or notable people in the hospital sector don't want to get stuck in the middle of the fight between the two healthcare heavyweights.
To learn more:
- read the Community Health Systems press release
- here's the Tenet press release
- read the Wall Street Journal blog
- here's the Tennessean article
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