Shares of activist target Tenet Healthcare Corp. (THC) - Get Tenet Healthcare Corporation Report fell on Thursday, Oct. 26, following a Reuters report that the hospital operator has pulled the plug on its sale process.
A source close to Tenet told TheStreet that the report is not accurate, saying no options have been taken off the table as part of the comprehensive strategic review process.
According to the Reuters report, Tenet, whose shareholders include activist investor Glenview Capital Management LLC, ended the sale process on the heels of the Oct. 23 departure of CEO Trevor Fetter. The report added that the firm continues to evaluate options to address its $15 billion debt and enhance shareholder value.
The stock closed at $12.87, down 9%.
Representatives for Tenet and Glenview declined to comment.
KeyBanc Capital Markets analyst Jason Gurda wrote in a note in September that he believed it was "unlikely [Tenet] will find a buyer for the whole company due to THC's high level of debt and the likely lack of interest from potential strategic buyers."
Dow Jones reported in September that Tenet was exploring options, including a potential sale.
Dallas-based Tenet said on Aug. 31 that chairman and CEO Fetter will step down at the earlier of March 15, 2018 or when a successor is named. The company tapped independent lead director Ronald A. Rittenmeyer as executive chairman.
In the same announcement, Tenet said it started the process to "refresh the composition of its board."
The announcement followed the Aug. 17 resignation of two Tenet directors associated with Glenview Capital. The directors, Randy Simpson and Matt Ripperger, wrote in a letter to the board that they resigned due to "irreconcilable differences regarding significant matters impacting Tenet and its stakeholders."
Tenet is slated to report third-quarter results on Nov. 6.
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