Aug. 13, 2013, 1:57 AM
- A majority of Health Management Associates (HMA) shareholders have voted to oust the U.S. hospital company's board and replace it with a slate of directors from activist investor Glenview Capital.
- HMA says an independent inspector will review the result.
- If approved, the outcome puts HMA's proposed $3.9B sale to Community Health Systems (CYH) in doubt, as Glenview opposes the deal for being too cheap. Rather, the hedge fund prefers to improve HMA's performance.
- Notwithstanding, Community Health remains committed to buying HMA. "Our definitive agreement to acquire HMA remains unchanged," Community Health says.
- Glenview intends to consider Community's bid after the new board, which is chaired by Steven Shulman, is in place.
- The ouster of HMA's board is a "stunning and serious event, one that happens rarely among publicly traded companies," says CRT Capital Group analyst Sheryl Skolnick.
Aug. 12, 2013, 10:05 AM
- Glenview is reportedly expected to win, as soon as today, Health Management Associates (HMA) consent solicitations to replace the latter's entire board.
- Glenview, which owns a 14.6% stake in HMA, opposes its sale to Community Health Systems (CYH) for $3.9B, saying the deal "establishes an important floor value" that should be the basis for obtaining greater value for shareholders.
- Meanwhile, an unnamed HMA investor has sued to prevent the transaction from going ahead, saying the offer undervalues the company.
Aug. 9, 2013, 4:25 PM
- Health Management Associates (HMA -0.2%) makes a settlement offering to Glenview Capital Partners after Institutional Shareholder Services throws its support behind Glenview, saying it would now consider adding all eight nominees to its board - as long as the hedge fund is willing to retain two or three current directors. Glenview could also take the chairman spot.
- Glenview, for its part, appears to be ignoring HMA's proposal, preferring to let the shareholder vote play out.
Aug. 9, 2013, 4:09 PM
Aug. 7, 2013, 7:03 AM
- Glenview Capital Partners has dismissed Health Management Associates' (HMA) offer of a "hybrid board" that would consist of nominees from both companies, with the hedge fund reiterating that it wants to replace HMA's entire board.
- HMA, which is being bought by Community Health Systems (CYH) for $3.9B, had offered to let one of Glenview's candidates be Chairman.
- Glenview owns a 14.6% stake in HMA and opposes the sale, saying the deal "establishes an important floor value" that should be the basis for obtaining greater value for shareholders.
Aug. 1, 2013, 1:11 PM
- Tenet Healthcare (THC -0.1%) and Health Management Associates (HMA +0.3%) are facing charges of paying kickbacks to a Georgia clinic in exchange for referrals.
- The two hospital chains are being accused in a whistle-blower lawsuit brought by Ralph Williams, a former CFO of HMA, who says the clinic recruited pregnant, undocumented Hispanic women, who would be eligible for Medicaid benefits when they gave birth, and referred them to HMA and THC hospitals in exchange for kickbacks.
- HCA recently reported its Q2 earnings rose 8.2%, as the hospital operator saw more patients and posted more revenue from each visit.
Jul. 30, 2013, 10:02 AM
- Health Management Associates (HMA -10.4%) expects Q2 adjusted EPS $0.10-0.11 vs forecasts of $0.21.
- Predicts net revenue of $1.46B vs $1.69B a year ago and consensus of $1.73B, hurt by weak admissions.
- Adjusted EBITDA seen at $190-195M.
- Same hospital net revenue is expected to fall by $74M, due to lower revenue per adjusted admission.
- Receives additional subpoenas from the U.S. Department of Health & Human Services regarding certain emergency room operations and physician relationships. (PR)
- Names John Starcher as interim President and CEO, effective from Thursday, to replace the retiring Gary Newsome. Starcher is HMA's Eastern Group President.
- Earlier, HMA announced that it's being bought by Community Health Systems (CYH -1%) for $3.9B.
Jul. 30, 2013, 9:12 AM
Jul. 30, 2013, 7:30 AM
- In a deal that's been expected for a while, Community Health Systems (CYH) agrees to acquire Health Management Associates (HMA) for $3.9B in cash and shares.
- The offer of $13.78 a share is lower than the latter's close of $14.92 yesterday.
- Community Health is also taking on $3.7B i debt, taking the total deal to $7.6B.
- Health Management's shares are -4.8% to $14.20. (PR)
Jul. 29, 2013, 9:49 AM
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Jul. 19, 2013, 3:39 PM
Jul. 19, 2013, 9:35 AM
Jul. 16, 2013, 12:48 PM
Jul. 9, 2013, 3:45 PMMore on the takeover rumors that have shares of Health Management Associates (HMA +8.1%) moving sharply to the upside in afternoon trading: Community Health Systems (CYH +3.9%) is the most likely buyer, sources tell Reuters, although HCA Holdings (HCA +1%) and LifePoint Hospitals (LPNT +3.3%) are also mentioned as interested parties. | Jul. 9, 2013, 3:45 PM | Comment!
Jul. 9, 2013, 2:11 PM
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