This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Tenet to Buy Vanguard Health Systems: Ahead of the Ticker

NEW YORK ( TheStreet) -- Hospital operator Tenet Healthcare (THC - Get Report) said it will acquire smaller rival Vanguard Health Systems (VHS) for $4.3 billion, or $21 a share, a 70% premium to Vanguard's closing price on Friday.

The deal, which includes the assumption of $2.5 billion of debt, will allow Tenet to enter new markets, according to CEO Trevor Fetter.

In a statement, Fetter said, "This acquisition will take Tenet into new geographic markets, expand the breadth of our service offerings, diversify our earnings sources and increase the benefits we expect to realize under healthcare reform." The acquisition will give Tenet 28 acute care hospitals in markets including Boston, Chicago, Detroit, Phoenix and San Antonio.

Tenet said it expects the deal to add to earnings in the first year and generate annual savings of $100 million to $200 million. The deal is expected to close by the end of the year.

British cell phone company Vodafone (VOD) agreed to buy German cable operator Kabel Deutschland for €7.7 billion ($10 billion) in its second acquisition of a European fixed-line network in the past year.

Vodafone's offer of 87 euros a share is valued at €10.7 billion when including €3 billion in net debt.

Vodafone beat out billionaire John Malone's Liberty Global (LBTYA - Get Report) for Kabel; Liberty Global made a preliminary offer for the company last week.

Kabel's board is expected to recommend Vodafone's offer, according to statements by both companies.

Hostess Brands said its Twinkies snack cakes will return to store shelves on July 15 under its new ownership.

In what the company is touting as "the sweetest comeback in the history of ever," Twinkies and sister products including CupCakes and Donettes will once again be for sale after Hostess went bankrupt last year amid a fight with its union workers, who went on a strike that crippled the company's production. Hostess is now owned by private-equity firms Apollo Global Management (APO - Get Report) and Metropoulos & Co..
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
LBTYA $38.24 1.40%
THC $33.06 4.30%
VOD $32.89 0.46%
VHS $0.00 0.00%
APO $17.32 2.42%


Chart of I:DJI
DOW 17,834.52 -56.64 -0.32%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs