Community Health Systems, Inc. on Friday said it would back a full slate of 10 nominees for the Tenet Healthcare Corp. board of directors at the rival hospital company’s annual meeting this fall in an attempt to oust the current board, which in December rejected CHS’s $3.3 billion unsolicited takeover offer.
CHS Chairman/CEO/President Wayne T. Smith said the action was necessary because the current Tenet board refuses to discuss what he has called a generous acquisition offer that would benefit Tenet shareholders.
“By just saying no to our 40% premium offer, installing a poison pill with a 4.9% trigger, and delaying the 2011 Annual Meeting for six months -- instead of entering good-faith discussions with us -- Tenet’s highly paid board has clearly demonstrated its entrenchment,” Smith said. “Tenet shareholders deserve better. Accordingly, we have today taken the first step in running a full slate of 10 highly qualified independent directors to replace the existing Tenet board. If elected, these directors will act in the best interest of Tenet’s shareholders and carefully evaluate the value-creation opportunity represented by the CHS offer.”