Glenview Capital Management confirmed that Institutional Shareholder Services supports its solicitation to refresh the sitting board of HMA.
Consequent to the blow from the proxy advisory firm, Health Management Associates Inc (NYSE:HMA) has made a settlement by considering Glenview’s eight nominees to the board.
ISS support to Glenview Capital
Activist hedge fund Glenview Capital owns 14.6 percent of the common stock of Health Management Associates Inc through affiliated investment funds. This makes Glenview the largest shareholder in HMA.
Glenview confirmed that today ISS has issued a comprehensive report supporting every element of Glenview’s consent solicitation to replace and refresh the sitting board of Naples-based HMA.
The hospital operator HMA said it would now consider adding all of Glenview’s eight nominees to the board, as long as Glenview is willing to retain two or three current directors. HMA also indicated Glenview could also take the chairman spot.
Glenview Capital dismissed the offer
Earlier, the activist hedge fund dismissed the offer of a hybrid board consisting of nominees from Glenview as well as HMA. Glenview Capital said that the shareholder vote will decide the outcome. Late last month, Community Health Systems announced it would acquire HMA for $7.6 billion including debt assumption of $3.7 billion. CHS has proposed to pay HMA shareholders $13.78 per share, plus a 16 percent stake in combined company.
Glenview Capital applauds ISS
In its statement Friday, the activist hedge fund applauded ISS for the amount of study and analysis performed in considering the eight nominees of the Fresh Alternative Board. Glenview appreciated that ISS is part of the broad and growing chorus of voices calling for complete change at HMA and the hedge fund believes ISS’s conclusions reflect not only HMA’s historical shortcomings but more importantly reflect the skill, sincerity, preparation and thoughtful approach of the eight nominees.
The hedge fund urged the Health Management Associates Inc (NYSE:HMA) shareholders to vote promptly to revitalize HMA.
Despite Health Management Associates Inc (NYSE:HMA)’s recent offer, Glenview’s fight appears to be continuing.