Where the deal gets a bit convoluted is that this offer is “the best and final offer based on information currently available.”
Community Health also said that it if Tenet does not begin good-faith discussions for a merger by 6:00 PM EST on May 9, 2011, then this new offer will expire and the company will also withdraw its proposed nominees it wanted elected to Tenet’s Board of Directors.
This is now called a 69% premium to the unaffected stock price when Community Health made its offer public. What is interesting is that Tenet holders and M&A speculators had always treated this as though a higher price was coming. The current belief is that Tenet will reject this offer as well.
Tenet shares closed at $6.93 on Friday against a 52-week range of $3.92 to $7.70. The pre-market trading indication have Tenet shares down over 7% at $6.42 on more than 4 million shares. Community Health shares closed at $30.73 on Friday and we have yet to see any real moves in the shares.
JON C. OGG
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