American Federation of Teachers challenges Glenview Capital's involvement in merger
BY HAZEL BRADFORD | | UPDATED
The American Federation of Teachers is using the clout it derives from $1.08 trillion in members’ pension assets to question Glenview Capital Management’s role in a proposed merger that would create the largest hospital provider.
Hedge fund manager Glenview Capital, which manages $6.9 billion, is the largest shareholder in both Community Health Systems and Health Management Associates. CHS’ acquisition of HMA is pending approval from the Federal Trade Commission and HMA shareholders, who are scheduled to vote Jan. 8.
In a letter Tuesday to the chairmen of the companies’ boards, AFT President Randi Weingarten said: “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 also sent her letter to the FTC and the Securities and Exchange Commission. SEC officials, who approved the merger registration in November, declined to comment on the letter or possible actions.
Calls to Community Health Systems and Health Management Associates were not returned by press
