Tenet Healthcare has discarded Community Health Systems’ sweetened $3.3 billion bid, saying it undervalues the hospital chain, The Wall Street Journal reports. Community Health revised its hostile bid earlier this month, changing its $6 per share bid to all cash from $1 in Community Health stock and $5 in cash, adds Reuters.
The increased offer came after Tenet filed a federal lawsuit accusing Community of boosting its financial performance for years and overbilling Medicare. The combined companies would have estimated revenue of $21.9 billion and 176 hospitals in 30 states.
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