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Hospital Firm's Stock Rises on Takeover Talk

October 27, 1994|DEBORA VRANA | TIMES STAFF WRITER

LAGUNA HILLS — Speculation that Charter Medical Corp. might launch a bid to acquire Community Psychiatric Centers pushed up the price of the former Laguna Hills company's stock in New York Stock Exchange trading Wednesday.

Hospital operator Community Psychiatric, which moved its headquarters to Las Vegas in August, saw its stock price gain 37.5 cents to close at $10.25 a share in heavy trading.

CNBC correspondent Dan Dorfman said during a TV program Wednesday that Charter might make a $700-million hostile bid for the hospital company.

Suzanne Hovdey, a spokeswoman for Community Psychiatric, said company officials have no comment on the acquisition speculation.

Community Psychiatric has 7,000 employees and owns 47 psychiatric hospitals and 12 acute-care medical facilities in the United States.

Charter Medical, based in Macon, Ga., has nearly 12,000 employees and provides psychiatric and medical treatment through a network of hospitals worldwide.

Dorfman said that if Charter acquired Community Psychiatric, it could sell the company's acute-care facilities for up to $300 million to help pay for the merger.

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