AmSurg Corp. returned to TeamHealth with a revised bid to acquire the staffing company, dangling more cash before shareholders.
The new bid increases the amount of cash per share in the $7.6 billion deal by $4 per share, according to a news release. Under the deal that TeamHealth, Knoxville, Tenn., rejected in late October the company's shareholders would have received $11.49 per share. AmSurg's new proposal includes a cash consideration of $15.49 per share.
TeamHealth, in a prepared statement, said the revised offer was thoroughly evaluated and rejected on Oct. 30. The company did not respond to an interview request at deadline.
“After careful deliberation, the TeamHealth board of directors concluded that the revised proposal was not in the best interest of TeamHealth and its stockholders and TeamHealth orally communicated this determination to AmSurg on October 30th,” the statement said.
AmSurg is looking to build a company that would dominate the areas of ambulatory surgery, anesthesia, emergency services, hospitalists, neonatology and radiology.
TeamHealth said the bid undervalued the company, and that the company's board remains confident in its strategy plan and its acquisition of IPC Healthcare. That $1.6 billion deal is expected to close before year-end. When it was first announced, TeamHealth battled rumors that it was fending off its own takeover.
AmSurg, in a publicly released letter to the TeamHealth board, said the transaction would not interfere with the IPC deal. “You have been clear since our first discussion regarding concerns around timing and the potential interference with the pending IPC transaction. Let me reiterate—we would do nothing to impede the remaining steps necessary to finance and close the IPC transaction.”
In October, AmSurg took the proposal public in an attempt to push TeamHealth's shareholders to influence a merger.
AmSurg, still hopeful that TeamHealth will change its mind, has given the company until 4 p.m. ET on Tuesday to respond or the offer will be withdrawn.
