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Team Health rejects revised AmSurg merger deal

November 02, 2015

Team Health Holdings Inc. (NYSE: TMH), which includes healthcare staffing provider D&Y, today confirmed it received and rejected a second merger offer by AmSurg Corp.

Team Health rejected AmSurg’s original proposal last month.

The original proposal had a total enterprise value of $7.8 billion, based on AmSurg’s closing stock price Oct. 19, according to AmSurg. The revised proposal raises the amount Team Health stockholders would also receive by $4 per share to $15.49 per share. AmSurg reports the revised proposal has a total current value of $69.32 per Team Health share, or a total enterprise value of $7.6 billion, based on AmSurg’s closing stock price on Oct. 30.

The Team Health board of directors evaluated the revised proposal, in consultation with its financial and legal advisors, and concluded it was not in the best interest of Team Health and its stockholders..

“This conclusion was based on the fact that the revised proposal undervalues Team Health and does not provide certainty for Team Health’s stockholders, as well as the Team Health board’s continuing confidence in Team Health’s current strategic plan, the benefits associated with Team Health’s acquisition of IPC Healthcare, and Team Health’s leadership position in the physician services industry,” Team Health said in a press release. “The company noted that it remains committed to closing the IPC Healthcare transaction in the fourth quarter of 2015.”