Healthcare Business Review: Tenet’s New Initiatives, Fonar Shares Pop On Profit
Coventry Health Care’s (NYSE:CVH) proposed $5.6 billion purchase by Aetna (NYSE:AET) might be blocked by lawsuits brought by three pension funds which are investors in the former. The plaintiffs contend that Coventry’s shareholders are receiving a premium of only 20 percent, which is far below premiums realized in other similar deals, which have been up to 43 percent.
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Tenet Healthcare Corporation (NYSE:THC) reports a series of new financial initiatives among which include a $500 million buyback plan, a reverse split for shares, and $800 million in new debt which will be used partly to retire higher-interest notes. In addition, the firm expects to make near-term purchases of around $400 million.
Shares of “stand-up” magnetic resonance imaging devices maker Fonar Corporation (NASDAQ:FONR) jump more than 30 percent on word of a 91 cents per share fiscal year 2012 profit, which is almost twice the 55 cents per share of 2011. Revenue increased by 19 percent to $39.4 million on strength, across both its MRI segment which includes product sales, service and repair fees, and its MRI center management subsidiary.
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