Gentiva Health Services
' board of directors once again rejected
a sweetened offer from Kindred Healthcare
, reiterating that the $14.50 per share bid undervalues the company.
The latest rejection comes amid reports that Gentiva, an Atlanta-based home health and hospice operator, is considering a deal for peer Amedisys. Kindred said Friday
that the reports, if true, could cause it to drop its takeover bid for Gentiva.
Gentiva also urged shareholders not to tender their shares into Kindred's tender offer—the avenue that the larger company is using to build a 14.9% stake in Gentiva. A shareholder rights plan prevents Kindred from acquiring more than 15% of the company without permission.
But Gentiva pointed out that its shares have been trading above the offer price since Kindred expressed its intention to bring its takeover bid to shareholders.
In addition, Kindred is “exploiting a temporary decrease in Gentiva's historical stock price,” the company said in a news release. Looking at share prices during the year before the offer was made, the bid represents only a 4.7% premium to the company's 52-week high of $13.85, Gentiva said.
Its financial advisers, Barclays and Edge Healthcare Partners, also have determined that the offer is inadequate, the company added.
Gentiva earlier Monday declined to comment on a possible bid for Amedisys.Follow Beth Kutscher on Twitter: @MHbkutscher