Hospital Co. Settles Shareholder Suits Over Merger

Law360, New York (November 9, 2006, 12:00 AM EST) -- Hospital Corporation of America Inc. agreed to settle a shareholder lawsuit on Wednesday, paving the way for a $21.3 billion buyout of the for-profit hospital chain by private equity group Hercules Holding II LLC.

The United States’ largest for-profit hospital chain’s buyout deal with Hercules Holding had been threatened by six shareholder lawsuits that claimed the company’s board of directors was not paying shareholders enough under the transaction.

Under the proposed deal, which calls for purchasers to assume $11.7 billion in debt, shareholders would receive $51...
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