Gentiva Health Services
shot down Kindred Healthcare
's $16-per-share offer as a new, undisclosed buyer entered the fray.
A spokesman for Gentiva, an Atlanta-based home-health and hospice operator, would not reveal the identity of the new bidder. The mystery acquirer—a “recognized owner, operator and investor in the sector” according to a news release from Gentiva—could possibly acquire the company for $17.25 per share in cash. Gentiva has 36.84 million shares outstanding, meaning the offer would be worth $635.5 million.
Gentiva officials called Kindred's final offer “coercive” and reiterated its previous statements that Kindred's overtures have undervalued the company.
“The board concluded, based on thorough analysis, that it still leaves a significant gap between the true value of Gentiva and the consideration being offered and is not in the best interests of Gentiva stockholders,” Rod Windley, Gentiva's executive chairman, said in a statement
Kindred upped its offer
to $16 per share Monday. This is now the third time Gentiva has rejected the bids of the Louisville, Ky.-based post-acute-care operator. It previously spurned offers
of $14 and $14.50 per share.
Kindred executives were not immediately available for comment.
Gentiva's two financial advisers are Barclays and Edge Healthcare Partners, while Greenberg Traurig serves as its legal counsel.Follow Bob Herman on Twitter: @MHbherman