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Health Management Associates, the hospital company based in Naples, has been getting a lot of scrutiny lately.
In addition to an unflattering report on the television show 60 Minutes and various government subpoenas for information, now comes New York City hedge fund Glenview Capital Management.
On May 6, Glenview disclosed that it had acquired 14.6% of the company's shares (HMA's shares trade on the New York Stock Exchange under the symbol HMA). In a filing with the Securities and Exchange Commission, HMA says Glenview has disclosed that it may seek to “undertake a change of control or other extraordinary transaction” and the company responded by adopting a so-called poison pill “shareholder rights plan” that would prevent a takeover without the board's approval.
News of the filing boosted HMA's stock, which recently traded around $11.50, up 25% for the year to date.
But in a statement, Glenview says it has no plans to acquire a significant number of additional shares of HMA and seeks to avoid a public debate over the future of the company.
“We wish to clarify that Glenview has made no proposals, either to HMA or to any of its holdings over a 13-year period, which are to the exclusive benefit of Glenview,” the hedge fund statement reads. “We look forward to continuing our discussions with HMA in private and will use the governance tools available (which for us always starts with respectful and constructive dialogue) to pursue our common objectives of long-term value creation.”
HMA operates 71 hospitals with about 11,100 beds in nonurban areas throughout the U.S.
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