Triad merger with Community Health clears hurdle, stockholders to vote June 12

By Lisa Kerner

Charlotte, N.C., April 25 - The 30-day waiting period under the Hart-Scott-Rodino Act expired on April 23 for the proposed merger between Triad Hospitals, Inc. and a wholly owned subsidiary of Community Health Systems, Inc.

Triad shareholders of record as of May 3 will vote on the merger agreement at a special meeting on June 12.

On March 19, Community Health Systems entered into a definitive merger agreement to acquire Triad for $54 per share in cash, or about $6.8 billion, including $1.7 billion of existing debt.

A $130 million termination fee is included in the agreement.

The merger, slated to close in the third quarter of 2007, will create the largest publicly traded hospital company in the United States, according to a company news release.

Triad terminated its previous merger agreement with a group led by affiliates of CCMP Capital Advisors and GS Capital Partners. The $6.4 billion proposed merger included a $20 million breakup fee.

Franklin, Tenn.-based Community Health Systems operates general acute care hospitals in non-urban communities.

Triad, based in Plano, Texas, owns and manages hospitals and ambulatory surgery centers.

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