Health Management Associates, Naples, Fla., is taking action to prevent a takeover of the company.
The beleaguered hospital chain said today it has adopted a shareholder rights plan on the heels of an activist investor building a position in the company. A shareholder rights plan is a defensive maneuver to prevent a takeover.
Hedge fund Glenview Capital Management filed a Schedule 13D with the U.S. Securities and Exchange Commission earlier this month, disclosing a 14.56% stake in the company and noting that it may “engage in communications with relevant parties regarding the company and ways to enhance shareholder value.”
Those discussions, it said, might involve “the company's management, members of the board of directors, shareholders or other investors, potential strategic partners, financial advisers and other industry participants.”