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Did Rebuking CHS Lead to Tenet Stock Losses?

A recent article in the Wall Street Journal titled, "The Dangers of Saying 'No' to a Deal," explores the stock losses of several companies, including Tenet Healthcare Corp., after they turned down takeover attempts.

Community Health Systems offered to buy Tenet for $7.25 a share earlier this year — a price which Tenet turned down for a final time in May. Tenet said at that time that its current business strategy would "deliver greater value than Community Health's inadequate proposal," according to the report. However, Tenet's stock has dropped after it rebuked the deal. Yesterday, Tenet closed at $4.46 per share.

Other companies highlighted in the article include Yahoo, which turned down a roughly $50 billion bid from Microsoft in 2008, Computer Sciences Corp., and Airgas. All the companies are valued lower today than the bids they received from potential buyers.

Related Articles on Tenet:

Tenet Tempers Adjusted Earnings for 2011
Moody's Upgrades Tenet's Outlook From Stable to Positive
Tenet, Scripps Research Institute Partner to Build Hospital in Florida

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