J.P. Morgan Discusses Community Health Systems, Tenet Healthcare Deal (THC, CYH)

J.P. Morgan is out with a research report on the Community Health Systems Inc (NYSE: CYH), Tenet Healthcare Corporation (NYSE: THC) deal. It has a Neutral rating on shares of Community Health Systems.

In a note to investors, J.P. Morgan writes, "This morning, CYH raised its offer for THC to $7.25/share in cash. CYH characterized the upped bid as a “best and final” based on the information available now... which isn't any more than the rest of us have as THC has not engaged in discussions with the company. Also, CYH gave THC one week (until May 9) to begin discussions or otherwise stated the offer will terminate and the company will move on."

J.P. Morgan goes on to say, "Regardless of the outcome, CYH now faces the investigations led by the DOJ following from THC's lawsuit. The extensive data analysis out from CYH last week does present a more balanced picture than the initial THC observation ratio-only view and potentially could assist with the company's motion to dismiss the THC suit, but at this point the profile has been raised beyond that, and it's more about the DOJ investigations/audits, which we presume move forward."