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Tenet to Buy Vanguard Health Systems: Ahead of the Ticker

Stocks in this article: THC VHS LBTYA VOD APO

NEW YORK ( TheStreet) -- Hospital operator Tenet Healthcare (THC) 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) 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) and Metropoulos & Co..

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