Tenet (NYSE:THC) Shares Skyrocket On 50 Percent on Community Health (NYSE:CYH) Bid

Shares of Tenet Healthcare Corp. (NYSE:THC) have pushed up over 50 percent on the news Community Health System Inc. (NYSE:CYH) is pursuing a takeover of the hospital chain.

Tenet had turned down a previous offer of $3 billion in stock and cash, saying it was too low.

Other concerns were whether or not Community Health could successfully make the transition from managing a chain of small hospitals to larger ones like the approximate 50 hospitals Tenet operates.

The original offer was for $6 a share, with five of that offered in cash and $1 in stock. After the assumption of existing debt, the deal would be worth close to $7.3 billion.

If consummated, the deal would create a company generating revenue of about $22 billion annually.

Tenet was trading at $6.55, up $2.26, or 52.56 percent, as of 12:51 PM EST. Community Health also made a nice move, trading at $36.41, up $4.77, or 15.08 percent.