AmSurg offered TeamHealth $7.8 billion to acquire the company, but TeamHealth rejected the offer, according to a Knoxville News Sentinel report.
Here are five things to know:
1. AmSurg's original proposal offering the total current value of $71.47 per TeamHealth share which would have been a 36 percent premium for TeamHealth shareholders. However, TeamHealth President and CEO Michael Snow said AmSurg's proposal undervalued the company in a letter to AmSurg CEO Christopher Holden.
2. Knoxville City Council members approved an expansion for TeamHealth recently that included a nearly $900,000 tax break to grow corporate headquarters and create 250 new jobs. The company is also close to completing an acquisition of IPC Healthcare for $1.6 billion.
3. Mr. Holden previously characterized the potential deal as "a true partnership" that could integrate the physician subspecialties at AmSurg and expand its relationships with health systems. But Mr. Snow isn't so sure about the integration, stating "key strategic factors" and the execution risk of achieving value among the reasons why TeamHealth rejected the merger.
4. TeamHealth will continue to focus on the IPC Healthcare acquisition, expected to close in the fourth quarter. "While we can certainly understand why AmSurg would find a combination with TeamHealth appealing in such an environment, we are well positioned to independently seize advantageous transaction opportunities that may arise over time," wrote Mr. Snow.
5. AmSurg effectively completed a $2.35 billion acquisition of Sheridan Healthcare in July.