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  "documentTitle": "Health Management Associates (HMA)",
  "authorId": "12_Glenview",
  "authorName": "Larry Robbins",
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  "presentationDate": "2013-07-01 00:00:00",
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  "notes": "Uses a three-part structure (Facts, Fiduciary Duties, Our Opinion) to build a legal argument against the board's actions.",
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      "text": "Were HMA's Board's actions in 2011 appropriate and in shareholders' interests?",
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      "text": "In May 2009, Delaware court held that entering into Credit Agreement with poison put provision gives rise to grave concerns with respect to fiduciary duties as they could eviscerate the shareholder franchise. Only two years later, HMA's Board agreed to such a provision. Were HMA's Board's actions in 2011 appropriate and in shareholders' interests?",
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      "text": "HMA's Board of Directors included a 'poison proxy put' provision in its 2011 Credit Agreement ($2.2 billion outstanding) that results in an event of default if a majority of the Board is replaced by Glenview's nominees. The Credit Agreement has a 'dead hand' provision, meaning the Board does not have the ability to pre-approve the Glenview nominees to avoid an event of default",
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      "text": "The Credit Agreement with this poison put was entered into in 2011, after a Delaware court in Amylin Pharmaceuticals (May 12, 2009) pointedly described a similar poison put provision: 'A provision in an indenture with such an eviscerating effect on the stockholder franchise would raise grave concerns. In the first instance, those concerns would relate to the exercise of the board's fiduciary duties in agreeing to such a provision.'",
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      "text": "A provision in an indenture with such an eviscerating effect on the stockholder franchise would raise grave concerns. In the first instance, those concerns would relate to the exercise of the board's fiduciary duties in agreeing to such a provision. — Delaware court in Amylin Pharmaceuticals (May 12, 2009)",
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      "text": "Fiduciary Duties and Change of Control",
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