Formation Capital, Alpharetta, Ga., agreed to end a hostile takeover attempt of long-term-care provider Beverly Enterprises, Fort Smith, Ark., and Beverly agreed to treat Formation the same as other bidders during an auction of the company.
Beverly has said more than 12 potential bidders have expressed interest. Arnold Whitman, chief executive officer of Formation, which owns 8.1% of Beverly, said his company planned to bid competitively.
As part of the agreement with Beverly, Formation said it will withdraw its candidates for election to Beverly's board at the company's April 21 annual meeting.
In February, Beverly rejected a $1.53 billion buyout offer from Formation, saying a sale wasn't in stockholders' best interest. But in March, after a significant volume of stock changed hands, the company said it would consider a sale to the highest bidder in what would be at least a monthlong process.
Beverly operates 346 skilled-nursing facilities, 18 assisted-living centers, and 56 hospice and home-care centers. The company's stock has risen to more than $12 per share from $9 per share when the hostile takeover began.