Community Health Systems’ Bid for Tenet Healthcare Denied, Both Stocks Still Rise
Two hot stocks on trading radars this morning are Community Health Systems (NYSE:CYH) and Tenet Healthcare (NYSE:THC). Community Health Systems offered to buy Tenet Healthcare for $6 per share. Tenet was not happy with the bid and rejected it. In light of the news today, CYH shares are trading up 17%, or over $37 per share, while THC shares are trading up 54%, or at $6.62 per share.
What is so appealing about Tenet Healthcare as an acquisition target for Community Health Systems? Here are a few notable stats:
–THC carries $400 million in cash on its balance sheet, or $.82 per share.
–THC generates over $18 in revenue per share, or over $9 billion in revenue.
–THC operates 49 hospitals with 13,430 beds and employs over 43,000 people.
-In the most recent THC quarterly report, inpatient revenue dropped 2.5% to $1.43 billion and outpatient revenue rose 3.5% to $734 million.
-The downside is THC also holds over $4 billion in debt.
-THC is based in Dallas, TX while CYH is based in Franklin, TN.