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  "documentTitle": "Health Management Associates (HMA)",
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  "authorName": "Larry Robbins",
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  "presentationDate": "2013-07-01 00:00:00",
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  "notes": "Uses historical transcripts to contrast board claims with outcomes.",
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      "text": "Rather than recommending a premium sale to Private Equity, allowing all shareholders to benefit, Schoen and the Board (7 of whom are currently members of the 8 independent directors today), recommended a defensive tactic in the form of a $10 per share dividend",
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      "text": "Situation: Jan 2007 $10 dividend, leverage increase, stock price decline, -45% total shareholder return.",
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      "text": "Background: LBO of HCA in 2006, confirmed PE interest in HMA, dividend used to fend off interest.",
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      "text": "Relevance to Today: Board members from 2007 are still present; historical defensive tactics raise questions about current openness to strategic alternatives.",
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      "text": "January 17th 2007 Wall Street transcript: Bill Schoen discusses rejecting buyout for dividend.",
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      "text": "Business Observer: March 16, 2007 article on Schoen fending off PE investors.",
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      "kind": "quote",
      "text": "\"Can you talk about if the Company through this process discussed taking the Company private through a leveraged buyout and how you decided that this was the better alternative?\" — Gary Lieberman, Analyst, Stanford Financial Group. \"Yes, this is Bill Schoen speaking. We absolutely did, and we had several conversations with several people regarding that. And we came to the conclusion because of our extraordinary, outstanding balance sheet, that it would be a better approach -- the directors felt it would be a better approach to go ahead and give this cash dividend to our shareholders and then allow our shareholders to continue in the growth of our Company.\" — Bill Schoen, HMA Chairman. \"In a bold move, Schoen fended off private-equity investors that have snapped up rival hospital companies, such as HCA last year, by using some of the same tactics.\" — Business Observer.",
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      "text": "1. Per Bloomberg assuming divided reinvestment. 2. Note that the total shareholder return assuming dividends reinvested in security from 1/17/2007 through 5/6/2013 has been 0.2%.",
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      "kind": "title",
      "text": "Defensive Insular Tactics are Not a New Phenomenon – 2007 Case Study",
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