Health Management Associates Inc said on Wednesday its board backed its proposed takeover by Community Health Systems Inc after a review period spurred by activist investor Glenview Capital. Health Management said that the board had agreed to the transaction at the price of $10.50 in cash plus 0.06942 share of Community Health common stock, or about $13.44, per Health Management share, plus a contingent value right of up to $1.00 per share.Those were the terms of the deal when it was announced back in August by a previous board of directors, although a decline in Community Health's share price now puts the deal value at $3.6 billion plus the contingent value right compared with $3.9 billion it was when first announced.Health Management shares have also traded off since the deal and closed on Tuesday at $12.52.Glenview Capital, which owns 14.5 percent of Health Management's stock and is its largest shareholder, said that UBS Securities and Lazard Freres & Co had conducted a fairness opinion on the deal for the board.
Community Health Systems, Inc., is an operator of hospitals in the United States. Shares of CYH remained unchanged at $42.34. In the past year, the shares have traded as low as $27.51 and as high as $51.29. On average, 1667680 shares of CYH exchange hands on a given day and today's volume is recorded at 3500.
Health Management Associates, Inc. by and through its subsidiaries operates general acute care hospitals and other health care facilities in non-urban communities. Shares of HMA remained unchanged at $12.53. In the past year, the shares have traded as low as $7.25 and as high as $17.28. On average, 3813780 shares of HMA exchange hands on a given day and today's volume is recorded at 154100.
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