Wall Street analysts don’t expect Tenet Healthcare Corp. (THC – Get Report) to be swallowed whole in a blockbuster deal, despite buzz generated by a Wall Street Journal report late Wednesday, Sept. 13, that the activist-pressured hospital operator was exploring strategic options, including a sale of the company.
Tenet shares were up 5.6%, or 91 cents, to $17.15 through late morning trading Thursday.
Jason Gurda of KeyBanc Capital Markets said a more likely scenario for Tenet is to divest individual hospitals to various buyers as Community Health Systems Inc. (CYH – Get Report) has done and possibly to shed a major subsidiary.
“We believe it is unlikely [Tenet] will find a buyer for the whole company due to THC’s high level of debt and the likely lack of interest from potential strategic buyers,” Gurda wrote in a note Thursday morning.
He added that with an enterprise value of more than $16 billion, only HCA Healthcare Inc. (HCA – Get Report) and maybe Universal Health Services Inc. (UHS) are the only rival hospital operators capable of carrying out an acquisition of Tenet but doubted either would be interested.
Read more: https://www.thestreet.com/story/14306151/1/no-buyers-for-all-of-tenet-analysts-say.html