Larry Robbins‘ Glenview Capital disclosed, in a newly amended filing, a press release regarding Health Management Associates Inc (NYSE:HMA)’s takeover by Community Health Systems. In the press release, that can be read below, Glenview stated that it will vote in favor of the proposal.
“In light of our leadership role to Revitalize HMA and given our stance as HMA’s largest shareholder, Glenview offers the following statement regarding HMA’s Q3 earnings, the Board’s review of the pending Community Health System, Inc. (NYSE: CYH) (“CHS”) transaction, the issuance of fairness opinions by UBS Securities LLC and Lazard Frères & Co. LLC and CHS’s reaffirmation of its commitment to the transaction:
–We are disappointed to learn of the weakness at HMA as reflected in their Q3 results, which we believe reflects on the stewardship of the old Board and prior senior management. However, we are gratified that the new Board and a refocused and reconstituted management team are actively stabilizing and addressing financial and operating performance.
–We appreciate the thorough and comprehensive review of the CHS proposal conducted by the new Board and the work done by Alvarez & Marsal, UBS and Lazard in conjunction with the issuance of fairness opinions. Independent third party verification of fairness serves all shareholders’ interests.
–Based upon this comprehensive review and transparent disclosure of financial and operating conditions that is being made today, Glenview confirms its intention to vote its shares in favor of the CHS proposal, which we believe represents full and fair value for HMA.
–As CHS’s largest shareholder, we believe in the compelling strategic rationale driving the transaction and believe CHS is acquiring high quality assets whose fundamental performance will be significantly enhanced through the combined efforts of HMA and CHS leaders. CHS is well positioned to apply its best practices in core operational areas like physician relationships and recruiting, vendor contracting and clinical management to further stabilize and improve HMA’s quality, service delivery and financial performance.
–Finally, this experience reinforces the importance of shareholder engagement. It was only several weeks after Glenview filed its Form 13D on May 6, 2013 that the old Board of HMA retained an investment bank to assist in a review of strategic alternatives, and it was only after a broad and diverse chorus of voices indicated their dissatisfaction with its lack of leadership that the old Board concluded to accept the CHS proposal. All shareholders benefited from stronger shareholder engagement.
–Glenview thanks the men and women of HMA and of the new Board for their efforts to move HMA forward in preparation for embarking on a new chapter of quality, performance and growth with CHS.”
Glenview holds almost 37.8 million shares of Health Management Associates, which amass 14.28% of the company’s Class A common stock.