Tenet Healthcare Corp., Santa Barbara, Calif., won't have to wage a proxy fight against M. Lee Pearce because the shareholder and long-time critic of Tenet and its management said he won't issue a challenge. After meeting last week with Edward Kangas, a former accounting executive and a new independent member of Tenet's board, Pearce said in a written statement that he's convinced the board will work to reform the company and its governance. As a result, Pearce said, he won't challenge the board by nominating a slate of directors for election at Tenet's annual shareholders' meeting, set for July 23. Tenet sued Pearce, 72 and a physician by training, last month in U.S. District Court, Los Angeles, alleging that the shareholder was waging an unannounced proxy campaign to change the company's management in violation of securities laws. Pearce filed his response to Tenet's suit last week. No trial date has been set. -- by Vince Galloro
Tenet's board wins over disgruntled shareholder
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