Press release from PR Newswire
Glenview Capital Confirms Intention to Vote for Community Health Systems' Proposal
Wednesday, November 13, 2013
Glenview Capital Confirms Intention to Vote for Community Health Systems' Proposal07:30 EST Wednesday, November 13, 2013
Glenview Commends New HMA Board and Management for its Comprehensive Efforts to Stabilize the HMA Business
NEW YORK, Nov. 13, 2013 /PRNewswire/ -- Glenview Capital Management LLC, which owns 14.5% of the common stock of Health Management Associates, Inc. (NYSE: HMA) through affiliated investment funds, today issued the following statement:
"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 Freres & 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."
About Glenview Capital Management
Glenview Capital Management is a private investment management firm with more than $7 billion of assets under management. The firm was founded in 2000 and manages capital for qualified investors through a series of private investment funds, and has offices in New York and London. Glenview is focused on delivering attractive absolute returns through an intense focus on deep, fundamental research and individual security selection.
Cautionary Statement Regarding Forward-Looking Statements
This statement may include "forward-looking statements" that reflect current views of future events. Statements that include the words "expect," "intend," "plan," "believe," "project," "anticipate," "will," "may," "would" and similar statements of a future or forward-looking nature are often used to identify forward-looking statements. Similarly, statements that describe our objectives, plans or goals are forward-looking. Glenview's forward-looking statements are based on its current intent, belief, expectations, estimates and projections regarding the Company and projections regarding the industry in which it operates. These statements are not guarantees of future performance and involve risks, uncertainties, assumptions and other factors that are difficult to predict and that could cause actual results to differ materially. Accordingly, you should not rely upon forward-looking statements as a prediction of actual results and actual results may vary materially from what is expressed in or indicated by the forward-looking statements. Except to the extent required by applicable law, no person undertakes any obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.
SOURCE Glenview Capital Management LLC
For further information: Scott Tagliarino/Katrina Allen, ASC Advisors LLC, (203) 992-1230