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NEW YORK — Hospital operator Tenet Healthcare Corp. said Friday it is adopting a "poison pill" stock distribution measure as it tries to fight off a $3 billion takeover bid by rival Community Health Systems Inc.
Under the measure, if any person or firm buys more than 4.9 percent of Tenet's stock, shareholders who own less than 4.9 percent of the company's stock will get the right to buy one additional share for every share they own. The Dallas company said the measure will take effect Jan. 17.
A poison pill measure defends a company against takeovers by diluting the holdings of the would-be acquirer.
Community Health, which is based in Franklin, Tenn., went public with its cash-and-stock bid for Tenet last month. The offer values Tenet at $6 per share, and Tenet says that is too low.
Tenet also said it will hold its annual shareholder meeting on Nov. 3. The company usually has its shareholder meeting in early May. Community Health has said it plans to nominate directors to Tenet's board as part of its push to acquire the company.
Tenet shares rose 2 cents to $6.89 Friday, and the stock was unchanged in aftermarket trading. The price indicates that investors expect a better buyout offer.
