A group of private equity investors will nominate five candidates to be directors of Triad Hospitals, Plano, Texas, and has boosted its stake in the company to 8.8%, the investors said in a securities filing. A group of funds advised by TPG-Axon Capital purchased more than 1.3 million shares in six transactions this month for a total of $56.5 million. The funds owned a 6.2% stake in the company in November 2006, when they first criticized Triad for spending too much on acquisitions and capital expenditures and failing to provide sufficient returns to shareholders. The investor group includes Dinakar Singh, who is a former Goldman Sachs executive, and Texas Pacific Group, a private equity firm that owns a majority stake in Iasis Healthcare, Franklin, Tenn. At deadline, a Triad spokeswoman had not responded to a request for comment. Triad has said its spending on acquisitions and capital projects is appropriate. Since TPG-Axon made its criticism public, two potential joint ventures between Triad and not-for-profit hospital systems have unraveled. The company also said in November 2006 that capital expenditures for that year were slowing to a range of $570 million to $630 million from Triad's previous expectation of $630 million to $780 million. Triad owns or operates 52 hospitals and 12 ambulatory surgery centers in 17 states. -- by Vince Galloro
Group seeks to alter Triad board
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