Oppenheimer Highlights The Declined Offer Of Community Health To Acquire Tenet Healthcare

Oppenheimer is highlighting the announcement by Community Healthcare CYH that Dallas-based Tenet Healthcare THC had declined its of fer for $6/share ($5 cash, $1 in stock), which represents a ~40% premium to THC's closing price of $4.29. Despite the relatively attractive price tag, we believe this transaction is not such an obvious home run and cer tainly not to the tune of the ~20% rise in the stock. While Oppenheimer's analysis shows potential solid accretion, the transaction also adds massive operating and financial risk that could of fset benefits CYH closed Friday at $35.89 THC closed Friday at $6.65