AmSurg said it decided to drop the bid as the TeamHealth board had refused to engage in discussions.
TeamHealth said earlier yesterday that the revised proposal undervalued the company.
AmSurg had raised the cash component of its offer by $4 per share to $15.49 per TeamHealth share, but kept the stock component unchanged at 0.768 of its shares for each TeamHealth share.
The revised offer valued TeamHealth at $69.32 per share, or about $5.1 billion, based on the stock’s Friday close.
AmSurg’s first offer on Oct. 20 was worth $71.47 per TeamHealth share, or about $5.3 billion, based on the stock’s closing on Oct. 19.
Up to its Oct. 30 close, AmSurg shares had fallen 8% since it first offered to buy TeamHealth. That lowered the value of its offer.
AmSurg shares closed up 6.3% at $74.50 yesterday, while TeamHealth’s shares were down about 4.5% at $57.