INDIANAPOLIS (AP) — Shares of Community Health Systems Inc. fell Tuesday as Wall Street remained doubtful that rival hospital operator Tenet Healthcare Corp. will accept an increased buyout offer.
THE SPARK: On Monday, Franklin, Tenn.-based Community Health raised its offer by 21 percent to $7.25 per share, or about $4.06 billion. But it said the latest bid will expire May 9 unless Tenet is open to talks. It said new offer was its "best and final offer" based on information currently available.
Analysts have said it is not likely Tenet will accept the offer. The board of Dallas-based Tenet had rejected a $6 per-share, all-cash offer from Community Health last month, and the companies have been fighting over a deal since last fall in a dispute that has spilled into federal court.
THE BIG PICTURE: Community Health initially offered $5 per share in cash and $1 per share in stock in November. It took the offer directly to Tenet shareholders in December after Tenet rejected the bid.
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