HOSPITAL CORP OF AMERICA <HCA> GETS MERGER BID
Hospital Corp of America said it
received a letter today from an investor group offering to buy
the company for 47 dlrs a share.
    Based on 82 mln outstanding shares, the offer is worth
about 3.85 billion dlrs. But the company said that it would
take more than five billion dlrs to consummate the merger and
retire certain company debt.
    It said it does not believe the offer is in the best
interest of shareholders, but added that it is referring the
matter to its board for discussions and would respond in due
course.
    Hospital Corp of America said the letter was sent by
Charles Miller and Richard Ragsdale, two former officers of
<Republic Health Corp>, and Richard Scott, a partner in a
Dallas law firm.
    The investors' letter stated that based on discussions with
several major financial institutions they were confident
financing for the transaction could be arranged, Hospital Corp
of America said. But it said the letter did not indicate that
the investors had made arrangements to obtain financing.
    It said no further significant details were outlined in the
letter.
    Hospital Corp of America, a manager and owner of hospitals,
earned 174.6 mln dlrs or 2.08 dlrs a share, on revenues of 4.93
billion dlrs in 1986.

 Reuter
