LifePoint Hospitals, Brentwood, Tenn., said its board has authorized a stock repurchase plan of up to $150 million over the next 18 months. The company also said it would seek a technical amendment to its senior credit facility to allow it to issue new debt.
LifePoint board OKs stock repurchase plan
As of June 30, LifePoint has bought about $45 million in stock under a $100 million repurchase plan that the board approved in August 2009. The announcement of a new repurchase plan could be a sign that the company has made more purchases since June 30 that nearly exhaust the previous authorization, healthcare stock analyst A.J. Rice wrote in a research note.
LifePoint’s stock price rose about 10% Wednesday based on speculation that the company might go private in a leveraged buyout, according to Rice, a managing director with Susquehanna Financial Group. He added that there is no indication that the repurchase plan is a reaction to a takeover offer. In its announcement, LifePoint said the board made its decision at a regularly scheduled meeting.
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