June 25 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
The company has nine members on its board, according to its
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
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.