December 20, 2016 (Shareholders Foundation) - An investor who currently holds shares of TeamHealth Holdings Inc (NYSE:TMH), filed a lawsuit in effort to halt the proposed takeover of TeamHealth Holdings Inc by funds affiliated with Blackstone and certain co-investors for $43.50 per share.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:TMH stockholders by agreeing to sell TeamHealth Holdings Inc. too cheaply via an unfair process to funds affiliated with Blackstone.

On October 31, 2016, TeamHealth Holdings Inc (NYSE:TMH) announced that it has entered into an agreement to be acquired by funds affiliated with Blackstone and certain co-investors in a transaction valued at approximately $6.1 billion. Under the terms of the agreement Blackstone and its co-investors will acquire all of the outstanding shares of TeamHealth Holdings Inc (NYSE:TMH) common stock for $43.50 per share in cash.

However, the plaintiff claims that the proposed consideration NYSE:TMH shareholders will receive is grossly inadequate and undervalues TeamHealth Holdings Inc. Indeed, at least one analyst has set the high target price for NYSE:TMH shares at $50.00 per share. Furthermore, TeamHealth Holdings Inc reported that its annual Total Revenue rose from over $2.81 billion in 2014 to over $3.59 billion in 2015 and shares of TeamHealth Holdings Inc (NYSE:TMH) reached in 2015 as high as $67.41 per share.

In addition, the plaintiff alleges that the process is also unfair TeamHealth Holdings Inc stockholders. Indeed, JANA Partners LLC has already entered into a voting agreement pursuant to which JANA Partners LLC has agreed to vote its beneficially owned shares, totaling approximately 8 percent of the outstanding shares of TeamHealth common stock, in favor of the transaction.

On December 20, 2016, NYSE:TMH shares closed at $43.00 per share.