The board of directors of Beverly Enterprises, Fort Smith, Ark., voted unanimously to auction off the long-term-care company, which operates 347 skilled-nursing facilities, 18 assisted-living centers and 56 hospice and home health centers. Standard & Poor's placed Beverly on CreditWatch with negative implications, saying the company's new owners likely would weaken its credit profile. The board said it decided to sell the company in order to maximize the near-term value of its stock. Earlier this year, Beverly rejected a $1.53 billion buyout offer from an investors group led by Formation Capital, Alpharetta, Ga. Last week, Formation sent a letter to Beverly stockholders informing them that it had nominated new directors for Beverly for an April 21 vote and would consider raising its offer for the company. Beverly earned net income of $28 million, or 25 cents per share, on revenue of $1.99 billion in 2004. -- by Joseph Mantone
Long-term-care giant Beverly says it's up for sale
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