HMA assembles advisers in wake of takeover threat

(Story updated at 11:30 a.m. ET Thursday, June 13.)

Health Management Associates has tapped financial and legal advisers as it prepares to evaluate “strategic alternatives,” a phrase that often implies that a takeover may be on the horizon.

The Naples, Fla.-based company said in a news release that it has hired investment bank Morgan Stanley as well as law firm Weil, Gotshal & Manges as it confronts an activist shareholder seeking to force a change of control as well as “the board's ongoing consideration of strategic alternatives and opportunities.”

The move comes a day after the shareholder, hedge fund Glenview Capital Management, continued to exert pressure on the chain in order to raise its own stake beyond the 14.6% it currently holds. Any action to acquire more than 15% of the company's shares would trigger HMA's “poison pill,” or shareholder rights plan.

But the hedge fund did have one small victory Wednesday after the Federal Trade Commission granted antitrust approval (PDF) to four of its affiliates to buy up to $2.2 billion HMA shares. Glenview notified the chain of the filing under the Hart-Scott-Rodino Act on May 22, which prompted HMA to adopt the poison pill two days later. Glenview has said publicly that it does not intend to acquire all $2.2 billion shares, but has otherwise kept its intentions close to the vest.

HMA also said in its release that a search committee composed of members of its board of directors is already conducting interviews for a president and CEO to succeed Gary Newsome, who steps down on July 31.

Follow Beth Kutscher on Twitter: @MHbkutscher