Investor aims to replace Health Management board
Health Management's biggest shareholder, Glenview Capital, wants to replace company's board
NEW YORK (AP) -- Health Management Associates Inc.'s biggest shareholder said Tuesday that it wants to replace the hospital operator's current board with its own nominees to increase value for the company's investors.
Over the past two years, Glenview Capital Management has built a 14.6 percent stake in Health Management. It says it has pushed the company to consider strategic options such as selling itself. On Tuesday, the investment firm nominated eight new candidates for Health Management's board.
The company currently has nine directors, which Glenview encouraged shareholders to remove.
Glenview argued that there is "significant room for improvement" at the company and that it has fallen short in its returns to shareholders. It said the Health Management has performed worse than competitors in the 10 years through 2012.
Health Management is on the defensive. It said last month that it had adopted a shareholder rights plan designed to thwart takeover attempts not supported by the board. It also recently hired Morgan Stanley to help with a review of its strategic options.
Health Management said Tuesday that is going over Glenview's filings and will respond.
Shares of Health Management, which is based in Naples, Fla., closed down 10 cents at $15.39. The company's stock had risen 2 percent in the two years through December. In 2013, the stock is up 65 percent as investors consider changes the company might make.
