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Tenet’s Board Rejects Revised Unsolicited Bid from CHS

April 23, 2011

Tenet Healthcare’s board rejected a proposal from Community Health Systems to acquire all of the outstanding shares of Tenet for $6.00 per share in cash. Tenet says that offer “grossly undervalues the company and is not in the best interests of Tenet or its shareholders.” Tenet said that Community Health is proposing to acquire the company for the same price it proposed on November 12, 2010; a price that the Tenet board unanimously rejected. The Tenet board continues to believe that the Community Health proposal undervalues Tenet and fails to reflect Tenet’s prospects for continued growth and shareholder value creation, Businesswire reported.

Trevor Fetter, president and CEO of Tenet, said, “Community Health’s proposal continues to undervalue Tenet. Since Community Health’s original $6.00 per share proposal was made, Tenet has demonstrated improving business trends, including the best fourth quarter results in seven years. In addition, industry fundamentals are improving, and Tenet’s Outlook for 2011 and longer-term financial performance reflects strong growth.”

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