After the rejection by Tenet Healthcare Corp.’s board, the hospital operator Community Health System Inc. is said to be taking its $3 billion cash and stock offer for the smaller rival public. This is in a move to gather supports from shareholder deals.

The shares of tenets went for nearly 50 percent during the aftermarket trading. The shares rose for $2.04 up to $6.30.

The finalization of the said deal will create the second-largest hospital chain in the United States, having 176 hospitals throughout 30 states. The annual revenue marks at $22 billion. It has been said that this would be a big help for the Community Health in competing with Nashville, Tenn.-based HCA Inc that is operating more than 160 hospitals and nearly 100 surgery centers in 20 Britain states.

Last Thursday, Community Health said that it has already sent a letter to the board of Tenet last month. Community Health has offered $6 per share for the company that is based in Dallas. The offer includes $5 in cash and $1 in stock. The offer actually represents a 40 percent premium to Tenet’s closing price at $4.29 last Thursday.With the inclusion of the company’s assumed debt, its value deal will be about $7.3 billion. Basing the 485.5 million shares on November 2, the cash and stock portion is presumably at $2.91 billion. According to the Community Health, the cash portion will be funded with available cash that is currently on hand and debt financing as well.

However, the Franklin, Tenn.-based Community Health said that the Tenet Healthcare’s board has already declined the offer last Monday. They said that the offer does not give a “remotely fair value” to the shareholders.

The CEO and Chairman of Community Health, Wayne T. Smith wrote a letter to the Tenet’s board last Thursday and voiced his surprise and disappointment by the rejection of their offer. Smith now urges the shareholders to make decisions for themselves. According to Smith, the proximity of the company facility geographically speaking makes it a good fit. Having the merge will make both companies in a good position to find their way towards health care reform.

Smith further wrote, “It remains our strong desire to reach an agreement with Tenet. However, we are committed to completing this transaction and will consider all alternatives necessary to do so.”

The Tenet went over the offer of Community Health, with financial advisers around for feedback. The board, after the evaluation of the offer, it was found out and considered as an “inadequate proposal” and would not serve best for them.