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.
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