Tenet, based in Dallas, rejected a prior unsolicited offer of $6 per share in cash, or $7.3 billion, from Community and last month filed a lawsuit that alleged Community's admission policies put the company at risk for potential Medicare fraud liabilities of up to $1.1 billion.
Community moved to dismiss the lawsuit and responded last week with a detailed rebuttal. Community Chairman, President and CEO Wayne Smith dismissed Tenet's allegations as “misguided” and “wrong.”
Community said in a letter to Tenet's board of directors its latest offer would give Tenet shareholders a premium of 69% on the unaffected stock price when its initial proposal was made public on Dec. 9 last year. Tenet confirmed the company received Community's revised offer and said its board of directors will review the revised proposal and determine a course of action in the best interests of its shareholders.