Tenet Healthcare Corp (NYSE: THC) is having an incredible time in the market today, posting strong gains for the second trading session in a row. Ultimately, the gains are the result of management changes that were announced late last week, causing excitement among investors. As is normally the case, our partners at Trade Ideas were the first to alert us to the movement. At the moment (11:33), THC is trading at $16.93 per share after a gain of $2.48 per share or 17.16% thus far today.
THC Gains On Management Changes
As mentioned above, Tenet Healthcare is having an incredibly strong trading session today, following up on the gains we saw from the stock on Friday. At the end of the day, the gains are all associated with recent news of management changes that broke late on Thursday.
Late Thursday, THC announced that both Randy Simpson and Matt Ripperger had provided their resignation and that these resignations were effective immediately. The two were both members of the company’s Board of Directors and represented the interests of Glenview Capital Management, an asset management firm that holds a substantial stake in THC. Ultimately, the resignation was the result of what the two Board members said were irreconcilable differences in the way the overall Board has approached various strategic issues.
So, where are the gains coming from? Well, with the resignation of these two key Board members, investors are expecting a bit of a fight. In fact, many are saying that a full-blown proxy fight between Glenview Capital Management and Tenet Healthcare will be coming down the line relatively soon. While this may not sound so positive, this type of fight could lead to incredible shareholder-friendly concessions.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on THC. In particular, we’re interested in following the war that may be waged between THC and Glenview and the result of this battle. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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