Shareholders approved on Wednesday a proposed merger creating the largest U.S. hospital provider, despite concerns raised by the American Federation of Teachers over the companies' biggest shareholder, Glenview Capital Management.
Votes representing 81.7% of shares approved Community Health Systems' acquisition of Health Management Associates.
Wayne T. Smith, CHS chairman, president and CEO, said in a statement that the companies expect to finalize regulatory approvals and other details later this month. The merger is pending approval from the Federal Trade Commission.
AFT President Randi Weingarten is pushing for further review by the FTC and the Securities and Exchange Commission into possible conflicts of interest by hedge fund manager Glenview Capital.
“The fact that a single hedge fund, Glenview Capital, owns the largest block of shares in both CHS and HMA … raises serious questions about the (boards') fiduciary responsibility. These apparent conflicts of interest call into question the true beneficiaries of the proposed transaction,” Ms. Weingarten wrote to the board chairmen. AFT is also a large shareholder in both companies.
Calls to Glenview Capital and AFT were not returned by press time.