Activist investor proposes new HMA board, nominates 8 candidates
June 25 (Reuters) - Activist investor Glenview Capital Management, which has been trying to raise its stake in hospital operator Health Management Associates Inc, said it is nominating eight candidates to replace the company's current board.
The company has nine members on its board, according to its website.
Glenview has been pushing the company since mid-June to remove or amend its poison pill clause so that it can increase its stake to 25 percent from the current 14.6 percent.
HMA adopted the clause in May after Glenview indicated that it would raise its stake.
"For over a decade, despite the best efforts of well-intentioned individuals at the Company, HMA has fallen short in their financial returns delivered to shareholders," Glenview said in a letter to shareholders on Tuesday.
The firm said it was undecided on whether HMA should put itself on the block.
"Given HMA's history and culture, it is difficult to have confidence in the current board conducting an unbiased analysis of strategic alternatives."
The U.S. hospital sector is set to reap the benefits of the healthcare reform law as more Americans will gain compulsory insurance coverage.
Analysts also expect the sector to see consolidation.
On Monday, Tenet Healthcare Corp said it would buy Vanguard Health Systems Inc for $1.73 billion.
HMA shares were up 1 percent at $15.66 in morning trade on the New York Stock Exchange.
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