Seniors Housing Weekly Update - Will Kindred Up Its Price For Gentiva Health?

July 8, 2014

 

July 8, 2014. 60 Seconds with Steve Monroe. After being rebuffed at every turn, Kindred will either be forced to increase its bid or walk away....

Will Kindred Up It's Price For Gentiva Health?

Is time running out for Kindred Healthcare’s bid for Gentiva Health? Kindred has been repeatedly rebuffed by the Gentiva board, even after sweetening the offer by a small 50 cents a share. Now, with rumors of Gentiva perhaps going after Amedisys as a possible means to block Kindred’s takeover attempt, which has turned hostile, it is looking more like nothing will happen. Unless, of course, Kindred really tries to up its stake beyond the 14% or so of Gentiva shares it has accumulated. Gentiva is now trading well above Kindred’s last offer, so if a deal is to be struck the price will have to be increased again. There will be a limit to Kindred’s generosity, however. But we do tire of Gentiva management’s whining that Kindred is undervaluing the company. Come on, in April Gentiva was trading at $7.50 per share, and Kindred’s offer was almost double that. It looks like Kindred was the only one who saw value in Gentiva, or at least saw its value in combination with its LTACs, SNFs and rehab operations. Something will have to pop this month.   

 

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