On Friday, shares of healthcare services company Tenet Healthcare Corp. THC are rallying, up over 11% in morning trading after two members of the company's board of directors resigned.
According to The Wall Street Journal , board members Randy Simpson and Matt Ripperger notified the 10 members of Tenet's board of directors of their decision in a joint letter on Thursday, citing "irreconcilable differences." Simpson and Ripperger had joined the board early last year, and are both partners at Glenview Capital Management LLC.
However, with the members' departure brings the potential for a possible proxy fight. Simpson's and Ripperger's resignations apparently end a "standstill" agreement that prevented Glenview from "evaluating other ways to be a constructive owner of Tenet," they wrote in their letter, but continued, "Glenview remains fully committed to its ownership stake in Tenet and its desire to drive improved performance, culture and valued."
Tenet is one of the largest hospital owners in he United States. THC is currently a #3 (Hold) on the Zacks Rank, with a VGM score of 'B.' Shares of Tenet have lost well over 14% year-to-date, as the company was affected by the ongoing healthcare bill talks earlier this year.
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