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NEW YORK | Hospital operator Community Health Systems Inc. on Monday revised its $3 billion offer for rival Tenet Healthcare Corp. to an all-cash bid.

Community Health is now offering $6 per share in cash. In December, it had gone public with a bid of $5 per share in cash and $1 per share in stock. At the time, the offer was a premium of about 40 percent to the Dallas company’s shares.

But Tenet’s board rejected that offer, and adopted a “poison pill” measure to fend off the bid.

Tenet’s shares have recently been trading above $6.

But the company said Monday it will review the revised offer and make a recommendation. It said shareholders should take no action for now.

Tenet shares fell 26 cents, or 3.9 percent, to $6.40 in afternoon trading while Community Health shares dropped $1.74, or 5.5 percent, to $30.16 after falling as much as 14.3 percent earlier in the session.

Community Health Systems runs 130 hospitals in 29 states and focuses on fast-growing and non-urban markets. Tenet runs 50 hospitals spread across 11 states, and most of its facilities are in urban and suburban communities.


GM to raise prices owing to oil, metal costs

DETROIT | General Motors Co. says it will raise prices by an average of $123 per vehicle to make up for higher oil and metal costs.

The company says the increase will go into effect in the U.S. starting May 2.

Spokesman Tom Henderson says the increase affects nearly all Buick, Chevrolet, GMC and Cadillac models. He says oil prices played a big role in the increase, as did steel and other metal costs.

Oil prices affect the cost of plastic parts and tires, as well as filling cars with gas before they are sold.

GM is not alone in raising prices. Toyota Motor Corp. said last month it would raise prices on most 2011 Toyota, Scion and Lexus models between 1.2 percent and 2.2 percent.


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