Community Health, Tenet feud continues

Community Health Systems and Tenet Healthcare Corp. continue to trade punches in their heavyweight prizefight for control of Tenet.

Franklin, Tenn.-based Community responded to Tenet’s moves last week that make a hostile takeover of Tenet more difficult. In a news release, Community said that Tenet shareholders should be disappointed that their board has spurned Community’s offer and refused to negotiate, and has responded instead with “a double-barreled entrenchment strategy.”

That is a reference to Tenet’s two-pronged announcement last week. Tenet said it has adopted a shareholders’ rights plan that would trigger an issue of preferred shares to current shareholders in the event that any entity acquires 4.9% or more of the company’s shares. Tenet also said that it has amended its bylaws to allow its annual shareholders meeting to be delayed until Nov. 3; it has conducted its annual meeting in May in each of the past seven years.

“Rather than resorting to delaying tactics, Tenet should engage with us in good-faith discussions to complete a mutually beneficial transaction,” Community said in its release.

Dallas-based Tenet, meanwhile, announced that it will discuss its latest actions in a conference call scheduled for 8:30 a.m. Eastern time on Tuesday. The call will be available via the investors section of Tenet’s website. The call will replace Tenet’s scheduled appearance on Wednesday at an investors conference sponsored by J.P. Morgan in San Francisco. Community is scheduled to make a presentation at the conference at 4:30 p.m. Eastern on Tuesday. Free webcasts of conference presentations are available at J.P. Morgan’s website; registration is required.