Community Health Systems Down Sharply On Takeover Talk

Community Health Systems CYH is down 4.3% in pre-market trading after the company offered to buy Tenet Healthcare THC for $6.00 per share in cash and stock. CYH was downgraded to Hold from Buy at Lazard on this news. The offer price was for $7.30 billion for the company, and it represents a hefty 40% premium to yesterday's close. Community has said that Tenet rejected the offer three days ago. Community Health said it originally made the offer on Nov. 12.