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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. 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. 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.
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
Jul. 23, 2013, 10:38 AM
Jul. 19, 2013, 9:35 AM
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. | Comment!
Jul. 9, 2013, 2:11 PM
Jun. 12, 2013, 4:54 PMHealth Management Associates (HMA) confirms that it's in discussions with advisors, saying that its board has engaged Morgan Stanley and Weil, Gotshal & Manges in connection with the accumulation of shares by Glenview Capital, as well as to consider all strategic alternatives available. HMA doesn't intend to disclose any further developments until it's appropriate. In addition, a committee has been formed to lead a search for potential candidates to replace Gary Newsome, who will be retiring effective July 31. Shares +2.5% AH. | Comment!
Jun. 6, 2013, 11:35 AMMore interesting tidbits from Deutsche Bank's upgrade of Tenet Healthcare (THC +2.1%): Analyst Darren Lehrich (who spoke with management) says THC did not rule out "large-scale M&A (acquiring other investor-owned chains)," fueling some speculation about a deal for Health Management Associates (HMA +0.8%). A nice thought perhaps, but Lehrich says THC noted its recent strategy of "divesting rural assets," something HMA has a lot of. | Comment!
Jun. 4, 2013, 12:05 PMHealth Management Associates (HMA +0.2%) settles in after the company presented at the Jefferies 2013 Global Healthcare Conference in New York this morning. The shares are active again today amid additional speculation that the company might be back on the bidding block. Bloomberg reported earlier that the retirement of CEO Gary D. Newsome now puts it in the spotlight as one of hottest takeover targets around. Community Health Systems (CYH -0.4%) is widely viewed to be the lead bidder. | Comment!
May 31, 2013, 1:57 PMHealth Management Associates (HMA +4%) move up amid chatter that fellow hospital operator Community Health (CYH +4.5%) might be looking to buy the company. Susquehanna says CYH's continued interest in acquiring assets with scale "implies it would be interested in acquiring HMA in a friendly, non- hostile process" though any deal is unlikely to be happen in the very near term. | Comment!
May 28, 2013, 3:06 PMGlenview Capital claims it does not intend to bid for Health Management (HMA +5.2%), which recently adopted a poison pill apparently in response to Glenview's conversion of its Schedule 13G filing (disclosing a 14.6% stake) to a Schedule 13D. "We wish to clarify that [we] have made no proposals, either to HMA or to any of its holdings," Glenview says | Comment!
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