Investors Force Health Management Associates To Replace Entire Board Of Directors That Approved Merger With Community Health Systems

On August 16, 2013, Health Management Associates, Inc., (HMA) announced that a shareholder majority appointed a new Board of Directors; the previous board members were fired. The shareholder action took place two weeks after HMA announced a definitive merger agreement on July 30, 2013, with Community Health Systems, Inc. (CHS), in which CHS would acquire HMA for about $7.6 billion, which includes assumption of $3.7 million of HMA debt. The shareholder action was instigated by Glenview Capital Management, LLC an investment firm that owns 14.5% of HMA’s outstanding shares, and 9% of CHS shares. The merger . . .