Berggruen seeks information from SunLink

By Lisa Kerner

Charlotte, N.C., Jan. 22 - SunLink Health Systems, Inc. investors led by Berggruen Holdings North America Ltd. were pleased with the company's retention of Stephens Inc. to advise the board on strategic alternatives, including the recent offer from Resurgence Health Group, LLC.

"You have not, however, addressed our concerns about the members of your so-called 'special committee' or how you determined their independence," Berggruen said in a letter to SunLink's board.

In particular, Berggruen questioned board member Howard Turner's "close personal and professional ties to management."

Berggruen's letter was included in a schedule 13D filing with the Securities and Exchange Commission.

In addition, SunLink has not responded to the inspection demand made by Cede & Co. on Berggruen's behalf on Jan. 11, the letter stated.

Berggruen and Resurgence are offering "maximum value" to SunLink shareholders, the investors said, and Berggruen remains willing to discuss the offer with management as well as the company's advisers.

It was previously reported that Resurgence offered to acquire SunLink for $7.50 per share in cash. Berggruen, SunLink's second-largest shareholder, teamed with Resurgence and agreed to provide the equity financing needed for Resurgence to close the transaction.

Resurgence is an Atlanta-based privately held company formed to acquire and operate rural and other small hospitals.

SunLink, also based in Atlanta, provides health-care services through the operation of exurban and rural community hospitals.

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