CHS stock surges after investor calls on board to replace CEO

Franklin, Tenn.-based Community Health Systems shares jumped more than 11 percent Monday after an investor released a letter it sent to CHS' board calling for the replacement of the company's board chairman and CEO Wayne Smith, according to Reuters.

In the letter dated Aug. 8, ASL Strategic Value says several missteps in recent years have led to the downfall of CHS, including the company's 2014 acquisition of Health Management Associates in Naples, Fla.

"It is time for the board to exercise its fiduciary duty to the shareholders and replace the current CEO," states the letter from ASL.

After the letter was released, CHS shares climbed more than 11 percent in afternoon trading to $7.80 per share, according to Reuters.

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