Tenet Healthcare has adopted a new stockholder rights plan – a so-called “poison pill” – in an attempt to thwart a hostile takeover by Community Health Systems. Tenet’s announcement that it will delay its annual company meeting until November is the latest move by management to retain control in the wake of Community Health’s unsolicited bid to buy Tenet two months ago. The new stockholder rights plan would only be triggered if a single shareholder purchased more than a 4.9 percent share of the company. Under such circumstances, existing shareholders would have the right to buy additional shares in the company. The effect of the provision would be to dilute the value of shares and thus discourage any single entity from acquiring a large block of stock – a so-called “poison pill” that is often used to ward off hostile takeovers. Community Health Systems, which offered $6 per share for Tenet in November, is standing by its original offer. In early trading Monday on Wall Street, Tenet shares were trading at $6.84. In addition to the new stockholder rights plan, Tenet also announced its intention to delay its 2011 Annual Meeting until November. Late last month, Community Health had announced plans to nominate a slate of hand-picked directors for election at the meeting with the intent of swaying a vote in favor of its bid. Tenet has twice rebuffed Community Health’s acquisition overtures, saying the offer undervalues the company. Tenet now appears to be settling in for a long fight. CHS responded quickly to Tenet’s latest moves and issued a statement late Friday. "Tenet shareholders should be deeply disappointed that their board's response to a compelling 40 percent premium offer is a double-barreled entrenchment strategy – facilitating a significant delay of their 2011 Annual Meeting and installing a poison pill,” the company stated. “We are confident that Tenet shareholders will see these steps for what they are: The actions of a board that is not working for them. Rather than resorting to delaying tactics, Tenet should engage with us in good-faith discussions to complete a mutually beneficial transaction." Investment analysts aren’t so sure Tenet should jump at the current offer of $6 per share. Some have indicated that CHS may need to raise its bid to $7 per share in order to generate adequate interest from Tenet shareholders to sell. There also remains a possibility that a third company could enter the fray and offer more to buy Tenet.