This Day On The Street
Continue to site
ADVERTISEMENT
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

Acquisition Of Vanguard Health Systems, Inc. By Tenet Healthcare Corporation Inc. May Not Be In The Best Interests Of Vanguard Health Systems Inc. Shareholders

SAN DIEGO and NASHVILLE, Tenn., June 24, 2013 /PRNewswire/ --   Shareholder rights attorneys at Robbins Arroyo LLP are investigating the acquisition of Vanguard Health Systems, Inc. (NYSE: VHS) by Tenet Healthcare Corporation Inc. (NYSE: THC). On June 24, 2013, the companies jointly announced the signing of a definitive merger agreement under which Tenet will acquire Vanguard for $21 per share in cash. 

(Logo: http://photos.prnewswire.com/prnh/20130103/MM36754LOGO)

Is the Acquisition Best for Vanguard and Its Shareholders?

Robbins Arroyo LLP's investigation focuses on whether the board of directors at Vanguard is undertaking a fair process to obtain maximum value and adequately compensate its shareholders in the merger. 

On April 30, 2013, Vanguard released financial results for its fiscal 2013 third quarter and nine months ended March 31, 2013, reporting gains in cash flows from operating activities and net income attributable to Vanguard shareholders.  Specifically, Vanguard reported an increase in cash flows from operating activities of $79.6 million for the nine months ended March 31, 2013, compared to the same period the prior year.  The company also reported net income attributable to Vanguard shareholders of $47.4 million for the nine months ended March 31, 2013, compared to $38 million for same period the prior year.  In addition, Vanguard has exceeded analyst EPS estimates in six of the last eight quarters and exceed net income estimates in five of the past eight quarters. Moreover, following completion of the merger, Charlie Martin, Vanguard's founder, chairman, and chief executive officer, will join Tenet's Board of Directors. Keith Pitts, Vanguard's vice chairman, will join the Tenet senior management team as vice chairman.

Given these facts, the firm is examining Vanguard's board of directors' decision to merge with Tenet now rather than allow shareholders to continue to participate in the company's continued success and future growth prospects.   

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 18,126.12 -36.87 -0.20%
S&P 500 2,120.79 -2.69 -0.13%
NASDAQ 5,097.9760 -8.6170 -0.17%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs