Seniors Housing Weekly Update - Kindred Healthcare Increases Gentiva Health Bid

June 17, 2014


June 17, 2014. 60 Seconds with Steve Monroe. Kindred is taking its offer to buy Gentiva Health Services directly to Gentiva shareholders with a slightly higher bid of $14.50 per share.

Kindred Healthcare Increases Gentiva Health Bid

Well, well, well, it looks like Kindred Healthcare really does want to create a huge presence in the home health and hospice market. After making its $1.6 billion unsolicited offer last month for Gentiva Health Services, which was promptly and repeatedly rejected by the Board, Kindred has decided to take it directly to the shareholders. While we are not surprised, we were a little surprised that the all-cash tender offer was increased by only 50 cents a share to $14.50. Investors must think Kindred will go higher, as shares traded up to $14.69 after the announcement. Gentiva advised its shareholders not to respond until the Board has fully evaluated the offer. That seems absurd, as they should know whether it’s a good deal or not by now, and with a 70% premium now, it is an even better deal for shareholders. In the meantime, Kindred has announced a 9 million share stock offering, presumably to finance the deal, so their confidence level must be running high. As it should.



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