A PYMNTS Company

US: TeamHealth rejects $7.8 billion merger offer

 |  October 20, 2015

AmSurg proposed a $5.3 billion merger with TeamHealth Holdings as it looks to add heft to its business that provides doctors to hospitals and other healthcare services.

AmSurg, which revealed on Tuesday that private merger talks with TeamHealth fell through in September, said it had gone public with the offer to persuade TeamHealth “to come back to the table”.

TeamHealth, however, swiftly rejected the offer, saying it undervalued the company.

“The initial offer is 22 percent cash and 78 percent stock…the comparatively high stock component makes the chances of a final deal lower than if the deal had a greater cash component,” Wells Fargo analyst Gary Lieberman said in a note.

A deal will make the combination a leading provider of medical staff such as radiologists, anesthesiologist and physicians for ambulatory surgery and primary care, AmSurg said.

Full content: News Sentinel

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.