Community Health Buys Tenet for $7.25: "Best and Final" (CYH, THC)

Community Health Systems CYH today announced that it has raised its all-cash offer to acquire all outstanding shares of common stock of Tenet Healthcare Corporation THC to $7.25 per share from $6.00 per share. Community Health previously made a $6/share offer for Tenet, which can be found here. The increased offer is CHS's best and final offer based on information currently available to CHS. If Tenet has not begun good-faith discussions with CHS by May 9, 2011, at 6:00 p.m. ET, the offer will expire and CHS will withdraw its nominees for election to Tenet's Board of Directors. Wayne T. Smith, chairman, president and chief executive officer of CHS, said, “We are making this offer to bring this matter to a prompt conclusion in the best interests of all concerned. We call on the Tenet Board to uphold its fiduciary duties and enter into good-faith discussions with us to conclude a mutually beneficial transaction. Unless we see meaningful engagement by May 9, 2011, we will withdraw the offer and move on to the many other compelling growth opportunities available to us.” Each of Credit Suisse and Goldman Sachs has informed CHS that, subject to customary terms and conditions, it is highly confident that financing for CHS's offer can be obtained in the capital markets. Read more here.