Jan 19 (Reuters) - Tenet Healthcare Corp’s largest shareholder, hedge fund Glenview Capital Management, said two of its executives had joined the hospital operator’s board.
Glenview, which holds 17.95 percent stake in Tenet, said on Tuesday that it also had the option to nominate two more directors to the company's board between Dec. 15 this year and Jan. 31, 2017. (1.usa.gov/1T1n5OQ)
The addition of Randolph Simpson and Matthew Ripperger, co-heads of healthcare investments at Glenview, expands Tenet’s board to 12 members, of which 11 are independent directors.
Tenet’s shares rose 3.5 percent to $23.94 in morning trading.
“If Glenview’s on the board, it’s not selling its 18 percent position without a whole lot of warning,” Mizuho Securities analysts wrote in a note. “That relieves a huge amount of pressure ... and makes strides in de-risking the stock.”
Glenview, which has about $11 billion in assets, has also invested in health insurer Humana Inc and hospital operator Community Health Systems Inc, among others. (Reporting by Amrutha Penumudi in Bengaluru; Editing by Kirti Pandey)