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Tenet board to review proposal for less-stringent requirements for activist investor-initiated changes

Published 02/02/2018, 12:40 PM
© Reuters.  Tenet board to review proposal for less-stringent requirements for activist investor-initiated changes
THC
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  • The board of Tenet Healthcare (THC -4.5%) is reviewing a proposal by investor Glenview Capital seeking a shareholder vote to amend the company's bylaws to allow for Action by Written Consent, eliminating the required meeting of the majority of stockholders. If approved, it would make it easier and quicker to remove and replace the board.
  • Glenview, owner of a 17.8% stake in the company, seeks the right to rejigger the board since the company has underperformed for many years. The change in bylaws would enable an activist investor to drive change by obtaining the written support from a majority of shareholders without having to convene a meeting.
  • Shares are down along with the broad market in general and healthcare stocks in particular.
  • Now read: Hospital Stocks Could Rise This Year Because Of Inflation


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