Hospital Corporation of America, Inc. 2006: Leveraged Buyout

HCA: Should an investment firm join forces with another investor group to outbid an LBO offer for the largest US hospital management company?
Gailen Hite  | Spring 2008
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Roary Capital Partners was considering a proposal from private equity firm Blackstone Partners to join an investor group in outbidding a leveraged buyout offer for HCA, the largest US hospital management company. A competing bid needed to be all cash and exceed the LBO offer of $51 per share, already at an 18 premium to HCA's recent stock price. The original bidders would also receive a $300 million breakup fee if the board rejected their offer for a higher one. In this case students assess HCA and competitors' financial data and the LBO offer to determine whether Roary should join in the competing bid.

Case ID: 070303
Supplemental Materials: Excel Spreadsheets , Student Dataset
This case is used in core curriculum

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