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HCA and AHS may be delisted by the NYSE.

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The New York Stock Exchange has warned American Hospital Supply and Hospital Corp. of America of the possible action if they exercise a provision in their merger agreement calling for the exchange of newly issued stock. In a joint statement, the two firms said the exchange had started proceedings to delist the stocks, but the proceedings were suspended after they filed appeals. Both companies said they were aware of the regulation when they reached a merger agreement March 31, but “each company determined that it was in its best interest to include the share exchange provision in the merger agreement.”

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