Community Health Systems Adopts Poison Pill
October 03 2016 - 6:00PM
Dow Jones News
Community Health Systems Inc. on Monday said it has adopted a
poison pill, two weeks after it said it is exploring a deal and as
a Chinese billionaire has been building a stake in the company.
Tianqiao Chen recently increased his holding to 9.9% of
Community Health shares, according to a recent filing.
Late last month, Community Health Systems, one of the largest
U.S. hospital companies, said it was exploring a deal after
struggling to digest its acquisition of Health Management
Associates Inc.
The Franklin, Tenn.-based company said it had no timeline for
its talks with advisers and "no certainty that the exploration will
result in any kind of transaction."
On Monday, Chief Executive Wayne Smith said the board is
exploring a "variety of options" with private-equity sponsors "as
well as other potential alternatives that would benefit all
stockholders of the company."
He said the company adopted a stockholder protection rights
agreement for six months "in light of the recent accumulation of a
significant block of the company's common stock" to prevent someone
from buying a potentially controlling block before the company is
finished reviewing its options.
He said the rights agreement "is not intended to and will not
prevent a transaction involving the company's stock at a full and
fair price."
Shares, flat after hours, have lost 48% of their value this
year.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
October 03, 2016 18:45 ET (22:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Community Health Systems (NYSE:CYH)
Historical Stock Chart
From Apr 2024 to May 2024
Community Health Systems (NYSE:CYH)
Historical Stock Chart
From May 2023 to May 2024