Long Fight Ahead in Community Health Systems' Bid for Tenet

It’s shaping up to be a long fight.

Thierry Dosogne | Getty Images

I’m talking about Community Health Systems’ hostile bid for Tenet Healthcare.

The $6 a share bid, $5 of it in cash, now includes what will be a big fight for board seats.

Community nominated directors today for each of Tenet’s ten board seats—seats that won’t be voted on until Tenet’s annual meetings takes place November.

Tenet recently moved its annual meeting back to that last allowable date under Nevada law and also instituted a poison pill at a very low threshold of 4.9 percent.

I won’t debate the merits of either side’s position right now. There will be plenty of that in the next few months.

But one things is clear: to do a hostile deal requires management to understand that it can be in for a very long battle and all the distraction that can come aling with it.


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