CPC Extends Deadline for Charter Buyout Offer : Health care: Chief executive of the Laguna Hills firm tells Charter’s board it must exercise ‘fiduciary duties’ and entertain the proposal.

LAGUNA HILLS —  Community Psychiatric Centers said Monday that it is extending indefinitely its $1.1-billion unsolicited buyout offer for Charter Medical Corp. of Macon, Ga., in a bid to become the nation’s largest provider of psychiatric hospital services.

Charter management has refused to enter negotiations with the Laguna Hills-based psychiatric hospital chain. But James Conte, CPC’s chief executive, said his company is not giving up.

Conte said he was encouraged by “the support and encouragement we have received from (Charter’s) bondholders and other affected parties who find CPC’s proposal in their best interest and who view management’s rejection of our proposal as inappropriate.”

In a letter to Charter’s board of directors, Conte said the firm decided to extend its offer “based upon our continuing belief that each of you must properly exercise your fiduciary duties and allow us to proceed toward making a definitive offer.”

Conte said CPC would withdraw the proposal “if, in our sole judgment, progress toward our making a definitive offer is unsatisfactory.”

Charter’s directors have refused to meet with CPC to discuss the offer. They contend that the merger would raise antitrust problems with federal regulators and could hamper Charter’s program for restructuring $1.7 billion in debt. They also contend that CPC’s request to look at Charter’s books before making a final offer would give away Charter’s trade secrets.

CPC officials have called Charter’s objections “red herrings.”

And a representative of Charter bondholders has said the holders would like Charter to give more consideration to CPC’s proposal.

Charter officials could not be reached for comment Monday.

But Charter spokesman Andy Brimmer said the extension of the offer was meaningless since Charter has said it won’t consider it. “We are continuing our negotiations with our bondholders and creditors for financial restructuring,” he said. CPC’s proposal had been due to expire Monday.