Gary Lieberman at Wells Fargo Securities is in the camp that thinks Glenview Capital's takeover of the Health Management Associates board of directors may end up adding to Community Health Systems' takeover tab by early next year. Lieberman doesn't think the $7.6 billion deal will get called off, but Glenview will not look at Franklin-based CHS as a white knight as the former board did — even though it owns more than 9 percent of CHS.
Still, there are two things to think about from CHS' end: First, it would be easy to hold firm on the price because HMA's Q2 numbers and outlook were not good. Second, the extra money question could be resolved by a decent rise in CHS shares. The acquisition of HMA includes a $3.28 stock component that is now worth less than $3. But if CHS stock (Ticker: CYH) manages to climb back to its June highs thanks to a better Q3, its offer for HMA might be sweetened just enough to appease Glenview.
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