Thursday 26 May 2011

Usama bin Laden's Son Says He Wants to Be 'Ambassador for Peace' Between Muslims and the West


CAIRO, Egypt  —  Omar Usama bin Laden bears a striking resemblance to his notorious father — except for the dreadlocks that dangle halfway down his back. Then there's the black leather biker jacket.
The 26-year-old does not renounce his father, Al Qaeda leader Usama bin Laden, but in an interview with The Associated Press, he said there is a better way to defend Islam than militancy: Omar wants to be an "ambassador for peace" between Muslims and the West.
Omar — one of bin Laden's 19 children — raised a tabloid storm last year when he married a 52-year-old British woman, Jane Felix-Browne, who took the name Zaina Alsabah. Now the couple say they want to be advocates, planning a 3,000-mile horse race across North Africa to draw attention to the cause of peace.
"It's about changing the ideas of the Western mind. A lot of people think Arabs — especially the bin Ladens, especially the sons of Usama — are all terrorists. This is not the truth," Omar told the AP last week at a cafe in a Cairo shopping mall.
Of course, many may have a hard time getting their mind around the idea of "bin Laden: peacenik."
"Omar thinks he can be a negotiator," said Alsabah, who is trying to bring her husband to Britain. "He's one of the only people who can do this in the world."
Omar lived with the Al Qaeda leader in Sudan, then moved with him to Afghanistan in 1996.
There, Omar says he trained at an Al Qaeda camp but in 2000 he decided there must be another way and he left his father, returning to his homeland of Saudi Arabia.
"I don't want to be in that situation to just fight. I like to find another way and this other way may be like we do now, talking," he said in English.
He suggested his father did not oppose his leaving — and Alsabah interjected that Omar was courageous in breaking away, but neither elaborated.
Although there is no way to confirm the details he describes of his childhood and upbringing, the strong family resemblance and Omar's knowledge of Usama's family life have convinced many that he is bin Laden's son.
U.S. and Egyptian intelligence officials have not commented on his identity, but Omar and his wife insist they have not been bothered by Egyptian officials.
Omar said he hasn't seen or been in contact with his father since leaving Afghanistan. "He doesn't have e-mail," Omar said. "He doesn't take a telephone ... if he had something like this, they will find him through satellites."
Omar doesn't criticize his father and says Usama bin Laden is just trying to defend the Islamic world.
"My father thinks he will be good for defending the Arab people and stop anyone from hurting the Arab or Muslim people any place in the world," he said, noting that the West didn't have a problem with his father when he was fighting the Russians in Afghanistan in the 1980s.
Omar is convinced a truce between the West and Al Qaeda is possible.
"My father is asking for a truce but I don't think there is any government (that) respects him. At the same time they do not respect him, why everywhere in the world, they want to fight him? There is a contradiction," he said.
Usama bin Laden, believed to be in hiding in the Pakistan-Afghan border region, offered a truce to Europe in a 2004 audiotape and a conditional truce to the United States in a 2006 message. In November, he called on European nations to pull out of Afghanistan in a message seen by some experts as an effort to reach out to Europe.
But in a series of messages since last fall, he also has been calling for Muslims to rally around jihad, or "holy war," encouraging fighters in Iraq in particular to continue their battles with U.S. and Iraqi forces.
At least two of Usama bin Laden's sons, Hamza and Saad, are believed to have an active role in Al Qaeda — with Hamza believed to be in the Pakistan-Afghan border zone and Saad thought to be in Iran, perhaps in Iranian custody.
But most of the Al Qaeda leader's children, like Omar, live as legitimate businessmen. The family as a whole disowned Usama in 1994 when Saudi Arabia stripped him of his citizenship because of his militant activities.
The family is wealthy: Usama bin Laden's billionaire father Mohammed, who died in 1967, had more than 50 children and founded the Binladen Group, a construction conglomerate that gets many major building contracts in the kingdom.
Since leaving his father's side, Omar has lived in Saudi Arabia, where he runs a contracting company connected with the Binladen Group, but he spends much of his time in Egypt. It was during a desert horseback ride at the Pyramids of Giza that he met his wife.
Their marriage in April made them tabloid fodder, particularly in Britain, where headlines touted the "granny who married Usama bin Laden's son." Alsabah, who has married five times, has five grandchildren.
The couple has applied for a visa to Britain. And they are planning their endurance horse race across North Africa, which they hope to start in March. It is in the planning stages — they are seeking approval of governments along the route and need sponsors to help pay for the event and raise money for child victims of war.
Omar said they plan to ride 30 miles a day, with periodic weeklong rests in each country.
Teams from around the world will be encouraged to join in what the couple envisions as an equine version of the Paris-Dakar car rally. That rally was canceled this year due to fears over terrorist threats made by Al Qaeda-affiliated groups in North Africa.
Omar, however, said he isn't worried.
"I heard the rally was stopped because of Al Qaeda," he said. "I don't think they are going to stop me."

Wednesday 25 May 2011

100th Anniversary Indy 500: Previewing the Field, 23-33

For complete coverage of the IZOD IndyCar Series and the Indianapolis 500, visit SB Nation's Pop Off Valve.

Follow @sbnationindiana on Twitter, and Like SB Nation Indiana on Facebook.

May 25, 2011 - With the 100th anniversary running of the Indianapolis 500 just four short days away, it is time move past the drama of ride-buying and focus on the 33 cars and drivers that will start their engines on Sunday. Today, SB Nation Indiana looks at the back half of the field - can any of these drivers do what Ray Harroun and Louis Meyer did in 1911 and 1936, repspectively, in winning the 500 from this deep in the field?

Note: each of these cars has moved up from its original qualifying position after the No. 41 car was moved to the rear of the field following the driver swap of Ryan Hunter-Reay for Bruno Junquiera.

23. No. 78T - Simona De Silvestro
All De Silvestro has done this month is flip her car into the catch fence at IMS, have the car catch on fire and walk away with second and first degree burns on her hands. Oh, and then 48 hours after that wreck, she drove with heavily bandaged hands and qualified for her second straight 500.

The 2010 Rookie of the Year continues to gain fans with an effervescent personality (including a willingness to sign autographs with her "Mickey Mouse gloves" on as she called them). Asking for a win might be a little much, given her situation, but a top 10 performance would exceed last year's 14-place effort.

24. No. 23 - Paul Tracy
The highest qualifier from Sunday's Bump Day, Tracy left no doubt as to whether he would be in the 500 after withdrawing a time and failing to requalify. With rain imminent at IMS, Tracy put down four blistering laps; had he run those on Saturday, he would have been on the outside of Row 6 instead of the Outside of Row 8.

Always popular among open-wheel racing fans, Tracy is driving this race with Dreyer & Reinbold Racing; last year, the team had both Justin Wilson and Mike Conway in position to capture the Borg-Warner Trophy. If Tracy can avoid trouble, he should be running near the front in the search for his first (or second) 500 title.

25. No. 7 - Danica Patrick
Seemingly quick all month, Patrick (and the rest of Andretti Autosport) were barely up to snuff over the weekend, putting just two of its four primary drivers in the field (a third, Ryan Hunter-Reay, would be added to the field on Monday). Still, when push came to shove, Patrick found speed again, qualifying on the inside of Row 9.

Over the last few years, Andretti Autosport's setups have been better on race day than in qualifications. The team must hope that is the case again, though with Tom Anderson taking the fall for the poor qualification performance, there will be some added pressure on the Engineers. Patrick took a solid sixth last year, and with rumors flying that she will head to NASCAR full time next year (and allowing her to still race the 500), this may be her last best chance at a 500 win.

26. No. 6T - Ryan Briscoe
It is rare to find a Team Penske car this low on the grid. However, that's where Briscoe sits after a wreck the morning of Pole Day left his primary car damaged and his backup low on speed. Giving the Team Penske IZOD team a night to work on the backup however, it was only a matter of where Briscoe would qualify, provided he did not find the wall again.

Briscoe, since scoring two top 10s to start his career at IMS, the Australian has seemingly been snake bit, recording finishes of 23rd, 15th and 24th. Avoiding trouble while trying to move to the front of the field will be paramount if he wants to reverse his recent fortune.

27. No. 26 - Marco Andretti
The last car to qualify, Andretti said his mentality on the final run was to "put it in the Show or put it in the fence." Fortunately for Andretti Autosport, it was put in the 500 (at the cost of buying a ride for Ryan Hunter-Reay).

Unfortunately for the young Andretti, he has a habit of bouncing results around at IMS; in his first five starts look like this: 2nd, 24th, 3rd, 30th, 3rd. If we follow that pattern (and this certainly isn't the SATs), then Andretti is due for a disappointing performance on Sunday.

28. No. 83 - Charlie Kimball (R)
One of five rookies in the field, Kimball and teammate Graham Rahal struggled during qualifying weekend, while their counterparts at Target Chip Ganassi Racing had plenty of speed in participating in the Fast Nine.

Still, it would be a mistake to count out Kimball, who will be a strong candidate for Rookie of the Year honors. Having his teammate directly next to him should allow the duo to work their way through the field over the course of the race. Perhaps more important, having a week to pour over data from the Target Chip Ganassi Racing cars and finding the right race trim should give Kimball an edge.

29. No. 38 - Graham Rahal
It's hard to believe that Rahal is making his fourth start at IMS, but the 22-year old is now a veteran of the Indianapolis 500. The middle of Row 10 marks Rahal's worst starting position for the 500, but again, his Chip Ganassi Racing Team has the benefit of being able to study telemetry from the Target Chip Ganassi Racing cars of Scott Dixon and Dario Franchitti.

Last year, Rahal was quick, qualifying for the Fast Nine and running up near the front before a Black Flag scuttled his chances at a historic win. On the 25th anniversary of his father's lone 500 win, finding a Rahal in Victory Lane would be a great story (as would a throwback mustache in tribute to his dad).

30. No. 19 - Alex Lloyd
As impressive as Andretti's qualifying effort was on Sunday at the gun, Alex Lloyd's may have saved a race team. It was fairly apparent that rookie James Jakes was slow, and some of the money associated with a run at Indianapolis can help fill the budget for a team. Still, it looked as if Dale Coyne Racing was slow on speed in both cars. Instead, Lloyd, who finished fourth last year, put his car solidly in the field with about six minutes left on Bump Day.

If Lloyd can replicate some of last year's run, in which he finished fourth, it would be remarkable for a team that looked dead in the water until late on Sunday.

31. No. 31 - Pippa Mann (R)
In her first IZOD IndyCar Series event, Mann outqualified Conquest Racing's primary driver, Sebastian Saavedra. The Firestone Indy Lights veteran, Mann has always been quick at IMS, qualifying on the pole for the 2010 Freedom 100 before collecting her first career Lights win at Kentucky Speedway later in the year.

Mann is a dark-horse for Rookie of the Year honors. Sometimes the award can be won simply by avoiding attrition and collecting a stealthy top 15 finish. In other years, the driver needs to charge through the field. Mann has the experience in Lights to do this, but it remains to be seen if her car will have the handling and speed needed to put her in position to challenge for Rookie of the Year.

32. No. 32 - Ana Beatriz
The last of four Dreyer & Reinbold Racing cars in the field of 33, the most of any team in the field, Beatriz will be looking to build on a 21st place finish in her rookie campaign at IMS. The Brazilian is the slowest car in the field, though, which does not necessarily bode well for the race, as the slowest car in qualifying has never won the Indianapolis 500.

However, Beatriz has experience navigating traffic at IMS, running at or near the front in the Freedom 100 on several occasions. Being faced with getting through the field in one piece won't phase the 26-year old.

33. No. 41 - Ryan Hunter-Reay
The Andretti Autosport driver takes the seat originally filled by Bruno Junquiera, who qualified the ABC Supply car 19th on the grid. However, the No. 41 will now carry sponsorship from ABC Supply, DHL and Sun Drop after Andretti Autosport bought the seat in an effort to please its sponsors.

Hunter-Reay has last row experience, starting 32nd in 2009. Since a sixth-place finish with Rahal-Letterman Racing earned him the 2008 Rookie of the Year award, though, Hunter-Reay has not finished better than 18th in the 500. While karma has not seemed to be on his side this week, Hunter-Reay will need it to turn around if he wants to collect prize money for the most positions made up during the race.

Former Providence Personality Pleads Guilty To Insurance Fraud

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Former CITADEL AC WWLI (LITE ROCK 105)/PROVIDENCE personality TANYA CRUISE has reached a plea deal with prosecutors and will plead guilty to insurance mail fraud and conspiracy charges, reports the ASSOCIATED PRESS. In exchange for her plea, prosecutors will recommend that CRUISE, whose real name is LORI SERGIACOMI, be sentenced on the low end of the appropriate punishment range. She faces a maximum sentence of 5 years in prison for conspiracy and up to 20 years for mail fraud.

SERGIACOMI, former NORTH PROVIDENCE, RI Council President JOHN ZAMBARANO, ROBERT RICCI, and insurance adjuster VINCENT DIPAOLO were charged with intentionally damaging SERGIACOMI's home and pool and blaming it on a fictitious wind and rain storm, then filing a claim for $40,000.

The move, allegedly proposed by ZAMBARANO and DIPAOLO, was made to try and recover through insurance for damage actually caused by flooding, which was not covered by insurance. RICCI is set to pleaded guilty on JUNE 1st and DIPAOLO has pleaded not guilty; ZAMBARANO has been sentenced to almost six years in prison on insurance and corruption charges.

Former CITADEL AC WWLI (LITE ROCK 105)/PROVIDENCE personality TANYA CRUISE has reached a plea deal with prosecutors and will plead guilty to insurance mail fraud and conspiracy charges, reports the ASSOCIATED PRESS. In exchange for her plea, prosecutors will recommend that CRUISE, whose real name is LORI SERGIACOMI, be sentenced on the low end of the appropriate punishment range. She faces a maximum sentence of 5 years in prison for conspiracy and up to 20 years for mail fraud.

SERGIACOMI, former NORTH PROVIDENCE, RI Council President JOHN ZAMBARANO, ROBERT RICCI, and insurance adjuster VINCENT DIPAOLO were charged with intentionally damaging SERGIACOMI's home and pool and blaming it on a fictitious wind and rain storm, then filing a claim for $40,000.

The move, allegedly proposed by ZAMBARANO and DIPAOLO, was made to try and recover through insurance for damage actually caused by flooding, which was not covered by insurance. RICCI is set to pleaded guilty on JUNE 1st and DIPAOLO has pleaded not guilty; ZAMBARANO has been sentenced to almost six years in prison on insurance and corruption charges.

California investigates 10 life insurance companies over lack of payments to beneficiaries

California subpoenaed MetLife, the largest U.S. life insurance company, to testify at a public hearing on May 23 about how it handles unclaimed assets that belong to beneficiaries.

The hearing mirrored a situation that MetLife found itself in last Thursday, when it appeared before Florida Insurance Commissioner Kevin McCarty to answer questions on the same issue. (Here's more on the Florida life insurance hearing.) Today's investigative hearing in Sacramento before California Insurance Commissioner Dave Jones and State Controller John Chiang promised to be even rougher.

Later in the day, California also announced market conduct examinations of 10 large life insurance companies for failure to pay life insurance benefits to beneficiaries or the state after learning of an insured's death. MetLife, John Hancock Insurance, Prudential Insurance, Nationwide Insurance, The Hartford, Sun Life Financial, New York Life Insurance Co., Lincoln National Life Insurance Co., Aegon Group (which includes Transamerica) and Pacific Life Insurance Co. are under investigation.
Hundreds of millions owed in life insurance benefits

Jones says he has already uncovered evidence that for two decades MetLife failed to pay benefits to beneficiaries or the state after learning that an insured had died. (Here's more on why your life insurance company doesn't care if you're dead.)

During the hearing, California officials quoted academics who said that hundreds of millions of dollars in life insurance go unclaimed each year for one simple reason: The beneficiaries don't know the money exists.

Among the possible violations of California law listed at the hearing were:

Unfair claims settlement practices.
Failure to “escheat,” or turn over money to the state, when beneficiaries could not be found.
Failure to adequately control and monitor dormant retained asset accounts, which insurers use to pool benefits that haven't yet been collected.

Paying themselves

“Do (insurers) use cash values to pay themselves premiums after the death of the insured?” California regulators asked in a PowerPoint presentation just prior to the testimony of MetLife, the sole witness in the hearing.

The insurer was expected to acknowledge - as it did in Florida - that it didn't use the “Death Master” file, a Social Security database of people who've died, until 2007, when it began matching the list against its customers' policies. The company has said that it hadn't used the database on a regular basis until the end of last year. The Death Master file has been in existence since the late 1980s.

However, MetLife spokespeople have denied they did anything illegal.

“Our priority is to pay insurance benefits to those who are entitled to them,” said spokesperson Chris Breslin in a statement prior to the hearing. “When beneficiaries cannot be located, we turn those benefits over to the state.”
A small percentage

Using the Death Master file during 2007, MetLife turned up $51 million in unclaimed assets that went to beneficiaries and another $32 million that went to the state.

While that amount may seem large, it is less than 0.2 percent of the $44 billion in death benefits paid on individual life insurance policies over the same period, which dates back to the 1950s.

“Our experience … has shown us that over 99 percent of life insurance claims proceeds are paid as a result of routine notification and claim submission processes,” said Breslin.
$1 billion in life insurance unclaimed

At the Florida hearing on May 19, McCarty said he estimated that life insurers may owe beneficiaries and the 50 states more than $1 billion in unclaimed assets - money that is sitting in the insurers' retained asset accounts, which currently hold more than $28 billion, according to California officials.

A McCarty spokesman said the $1 billion figure came from Verus Financial LLC, a Connecticut firm that has been hired by 35 states to find unclaimed assets for state treasuries, and from discussions with other regulators.

However, even $1 billion is not large by life insurance standards. At of the end of 2010, life insurers' assets totaled about $5.3 trillion, according to Steven Weisbart, a vice president of the Insurance Information Institute.

“Total death benefits paid over the past 20 years are about $600 billion,” says Weisbart. “In relation to that, $1 billion is 1/6 of 1 percent, or 0.17 percent.”

Canadian life insurer Manulife, which owns U.S.-based John Hancock, has already settled with both Florida and California and agreed to change its payment practices in both states.

The original article can be found at Insure.com:

Read more: http://www.foxbusiness.com/personal-finance/2011/05/24/california-investigates-10-life-insurance-companies-lack-payments-beneficiaries/#ixzz1NNS9gA3t

Des Moines to self-insure for city health coverage

Des Moines is returning to a self-insurance system for employee health plans, a move city officials hope will eventually save taxpayers $1 million or more each year.

The City Council approved the switch during its meeting Monday night.

City administrators said it would help control rising health insurance costs, which currently run about $26 million annually.

The Des Moines Register reported Tuesday that if projected savings arrive, the move to self-insurance could become a key part of broader efforts to curb operating costs. Des Moines faces major revenue declines due to lower property valuations. The Legislature also is considering a proposal to slash commercial property tax rates by 40 percent.

Salary and benefits for the city's full-time workers account for about 60 percent of $160 million in general fund spending.

"I hope we stay self-insured," City Councilwoman Christine Hensley said. "I think the time is right for us to go forward with that. I think there have been some changes made."

Des Moines was self-insured before 2003, when the city started to buy private insurance through Wellmark Blue Cross and Blue Shield of Iowa.

The Register said changes in stop-gap, or excessive loss, insurance are among the biggest differences between now and 2003. Then, the city paid the first $300,000 of an individual claim before secondary insurance covered the cost. City officials said that would translate into $500,000 or more for taxpayers.

Multiple large claims helped drive the city's decision to end the self-insurance program. Under the new plan, the city's stop gap insurance will kick in on claims that exceed $125,000, lowering the risk to taxpayers.

Deputy City Manager Allen McKinley said savings in the first year of the new system are expected to be minimal because the time will be spent building reserves required to deal with fluctuations in claims. Significant savings could come in fiscal 2013 once the reserves -- equivalent to about 25 percent of annual claims -- are established.

"Conservatively speaking, we anticipate it being more than $1 million," he said.

City officials estimate health insurance cost would increase between $2 million and $3 million a year had they continued to have private insurance.

The new plan will take effect on July 1 and run through June 30, 2012. Officials said employees would see no change in benefits, health plans or provider networks.

Wellmark will continue to administer the city's employee health insurance claims.

Wednesday 11 May 2011

he Sky Is Falling: Judgment Day Is May 21, 2011

Most people have heard the “theory” that the world is going to end in 2012 according to the Mayan calendar, but just recently billboards have started to pop in throughout North Carolina and across the United States revealing the world’s last day is specifically going to be on May 21, 2011, based on the Hebrew Calendar.
According to digtiad.com, a broadcast ministry known as Family Radio located in Oakland, California have come up with the new Judgment Day date. The founder, Harold Camping, is claiming one can know the date of the creation of the world, Noah’s flood and more events that have been described in the Bible just by using a convoluted set of numerological calculations. Through the calculations, Camping claims one can then extrapolate when the Bible “guarantees” the world’s end.

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As Camping asserts his explanation for May 21, 2011 being the specific Judgment Day, the theory becomes even more farfetched. According to Camping, since God warned Noah of global Judgment Day seven days before it happened, this also correlates to the next Judgment Day seven “days” (specifically millennia) later. More, Camping says the flood can be dated back to exactly 7,000 years ago from May 21.
According to his website he says, “The Bible has given us absolute proof that the year 2011 is the end of the world during the Day of Judgment, which will come on the last day of the Day of Judgment.”
However Camping’s findings should be taking lightly, people have been predicting the end of the world, unsuccessfully of course, since 1260. Camping himself “miscalculated” in 1994. In 1860 there was even a “Great Disappointment” when people were warned about the Second Coming.
Considering this is not the first time Camping has predicted the end of the world and that morbid people throughout the ages have liked to indulge in the idea of “the end of the world,” May 21, 2011 is just going to be another day just as Y2K was another year. Don’t worry, the sky is not actually falling.
More articles filed under National News

Tuesday 10 May 2011

U.S. April Conference Board Employment Trends Index (Text)


The Conference Board Employment Trends Index declined 0.6 percent in April to 100.5, down from March’s revised figure of 101.1. This is the largest monthly decline since April 2009. The April figure is up 6 percent from a year ago.
Says Gad Levanon, Associate Director, Macroeconomic Research at The Conference Board: “While employment is growing at the fastest rate in years, the leading indicators for employment are decisively flashing yellow. In April, the Employment Trends Index experienced the largest monthly decline in two years. It is unlikely that the current pace of job growth can be maintained in the months ahead.”
This month’s decline in the ETI was driven by negative contributions from five out of the eight components. The weakening indicators include Initial Claims for Unemployment Insurance, Percentage of Firms With Positions Not Able to Fill Right Now, Number of Temporary Employees, Part-Time Workers for Economic Reasons and Job Openings, which is a forecasted component. The Employment Trends Index aggregates eight labor-market indicators, each of which has proven accurate in its own area. Aggregating individual indicators into a composite index filters out so-called “noise” to show underlying trends more clearly.
The eight labor-market indicators aggregated into the Employment Trends Index include:
Percentage of Respondents Who Say They Find “Jobs Hard to Get” (The Conference Board Consumer Confidence Survey)
Initial Claims for Unemployment Insurance (U.S. Department of Labor)
Percentage of Firms With Positions Not Able to Fill Right Now (National Federation of Independent Business Research Foundation)
Number of Employees Hired by the Temporary-Help Industry (U.S. Bureau of Labor Statistics)
Part-Time Workers for Economic Reasons (BLS)

Job Openings (BLS)

Industrial Production (Federal Reserve Board)
Real Manufacturing and Trade Sales (U.S. Bureau of Economic Analysis)
The Conference Board publishes the Employment Trends Index monthly, at 10 a.m. ET on the Monday that follows each Friday release of the Bureau of Labor Statistics employment situation report. The technical notes to this series are available on The Conference Board website: http://www.conference-board.org/data/eti.cfm.
Employment Trends Index (ETI) 2011 Publication Schedule
Index Release Date (10 AM ET) Data for the Month Monday, June 6 May Monday, July 11 June Monday, August 8 July* Tuesday, September 6 August* Tuesday, October 11 September Monday, November 7 October Monday, December 5 November*

*Tuesday releases due to holidays

SOURCE: The Conference Board http://www.conference-board.org

Community Health Ends Effort to Buy Tenet After Third Rejection

Community Health also will withdraw its slate of nominees for Tenet’s board of directors, the Franklin, Tennessee-based company said yesterday in a statement. Community Health, the second-largest U.S. hospital operator, said on Jan. 14 it would nominate 10 directors to replace Tenet’s current board.
Tenet’s refusal earlier yesterday to negotiate marked the third time its board rebuffed Community Health, turning down unsolicited bids in December for $6 a share in cash and stock and an all-cash offer in April. On May 2, Community Health raised its “best and final” offer 21 percent to $7.25 a share and said it would walk away from its effort if Tenet failed to begin “good-faith discussions.”
Tenet has said since December that the offers undervalued the company, and analysts have told Bloomberg that Tenet should be trading at more than $9 a share.
“We continue to believe that the execution of Tenet’s current business strategy will deliver greater value than Community Health’s inadequate proposal and we are not willing to enter into discussions based on many factors, including a grossly inadequate offer,” Tenet’s chief executive officer, Trevor Fetter, said in the statement.
Tenet’s board authorized as much as $400 million in share repurchases, according to the statement. The stock will be bought “at times and amounts based on market conditions and other factors,” Tenet said.

Fraud Lawsuit

Last month, Tenet filed a lawsuit accusing Community Health of defrauding Medicare, the federal health insurance program, and said legal troubles could make it hard to finance the acquisition. Community Health has also been subpoenaed by federal investigators for the Department of Health and Human Services and the Texas Attorney General’s office, asking for documents related to Medicare and the joint state-federal Medicaid program for the poor.
Tenet fell 1 cent to $6.52 at 4:15 p.m. yesterday in New York Stock Exchange composite trading. Community Health gained 45 cents to $31.08.
Brooke Gordon, a spokeswoman for Community Health, declined to comment beyond the company’s statement.
Tenet owns 49 hospitals in 11 states. Community Health owns, operates or leases 130 hospitals. HCA Holdings Inc., based in Nashville, Tennessee, is the largest U.S. hospital company.
To contact the reporters on this story: Pat Wechsler in New York pwechsler@bloomberg.net; Alex Nussbaum in New York anussbaum1@bloomberg.net
To contact the editor responsible for this story: Reg Gale at Rgale5@bloomberg.net