Tenet Healthcare Corporation Investor Investigation Over Buyout Offer

If you are a current investor in Tenet Healthcare Corporation (NYSE:THC) and purchased your THC shares prior to the announcement, and/or if you have any information relating the investigation, you have certain options and you should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this investigation, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Tenet Healthcare
Affected Securities: 

An investigation concerning whether the offer to take over Tenet Healthcare Corporation at a value of $6 per THC share and a proposed sale process would be unfair to investors of Tenet Healthcare Corporation (NYSE:THC) was announced.

The investigation by a law firm concerns whether Community Health Systems Inc, Tenet Healthcare Corporation and certain of its officers and directors breached their fiduciary duties owed investors in Tenet Healthcare Corporation (NYSE:THC) in connection with the proposed takeover.

On Thursday, Dec. 9, Tenet Healthcare Corporation announced that it has received a proposal from Community Health Systems, Inc. (NYSE: CYH) to acquire all of the outstanding shares of Tenet for $6.00 per share in cash and stock.
But Tenet Healthcare Corp said that proposal by Community Health Systems is identical in all material respects to a Community Health Systems proposal received by Tenet Healthcare Corporation already on November 12, 2010.
Tenet Healthcare Corporation said its Board of Directors determined that the prior Community Health proposal was not in the best interests of Tenet or its shareholders. Tenet Healthcare further said that Community Health is inadequate and an opportunistic proposal that would transfer the growth potential inherent in Tenet to Community Health without adequately compensating Tenet shareholders.

The market instantaneous reacted to the announcement. Shares of Tenet Healthcare Corporation (Public, NYSE:THC) traded during the past couple days before the offer at roughly $4.25 and increased in after hours trading in response to the offer to $6.34 per share.

The investigation by a law firm now concerns whether the offer undervalues Tenet Healthcare Corporation and a sale process is unfair to the shareholders of Tenet Healthcare Corporation (NYSE:THC). A potential class action lawsuit would seek to maximize the amount of money and information Tenet Healthcare Corporation shareholders receive in a buyout, so the law firm. Tenet Healthcare Corporation has performed well in the past for its shareholders. Tenet Healthcare’s 12months Total Revenue went from $7.7billion in 2006 to $9billion in 2009. Its Net Income rose from a substantial Net Loss of $851million in 2006 to a Net Income of $218million in 2009. For the first three quarters in 2010 Tenet Healthcare Corp. reported a combined 9months Total Revenue of $6.9billion with a 9months combined Net Income of $1,063million.

Therefore the investigation concerns whether in the event of a an agreement to a takeover the Tenet Healthcare Corporation Board of Directors undertake an adequate and fair sales process to obtain fair consideration for all shareholders Tenet Healthcare Corporation (NYSE:THC) and breach their fiduciary duties to Tenet Healthcare Corporation (THC) shareholder by failing to adequately shop the Company before entering into any transaction.