Glenview Capital Seeks Removal of Health Management Associates "Poison Pill" ~ market folly

Wednesday, June 12, 2013

Glenview Capital Seeks Removal of Health Management Associates "Poison Pill"

Larry Robbins' hedge fund Glenview Capital yesterday filed an amended 13D with the SEC on shares of Health Management Associates (HMA).  Their position size remains unchanged.  However, we recently highlighted how Glenview sought Hart-Scott-Rodino clearance to buy more HMA.

Glenview's latest amended 13D asks for the company to remove its poison pill.  Glenview writes,

"As previously disclosed by the Issuer, the Issuer adopted a “poison pill” rights plan that limits any shareholder and its affiliates and associates from acquiring beneficial ownership of more than 15% of the Shares of the Issuer.  The Reporting Persons urge the Issuer to redeem the poison pill, or at a minimum, amend the poison pill to increase the percentage of stock a person would be permitted to own without triggering the poison pill to a 25% threshold."

Robbins' fund is also evaluating potentially planning or proposing changes to the company's Board of Directors.  They intend to meet with potential nominees and other interested parties (HMA management, other shareholders, etc) regarding this matter.

The saga plays on.

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