Kindred, however, returned the swipe in a point-by-point response Tuesday.
Gentiva's shares, it said, reached that high prior to the Medicare rate rebasing that took a heavy-handed cut to home health payments. In addition, Kindred said the offer values Gentiva at about 9.3 times its projected 2014 earnings before interest, taxes, depreciation and amortization, based on research analysts' estimates.
“In order to send a strong signal to the Gentiva board, Kindred continues to urge all Gentiva shareholders to tender their shares in support of its value enhancing offer,” the Louisville, Ky.-based post-acute-care company said in a news release. “If a majority of the outstanding Gentiva shares are tendered prior to July 16, 2014, Kindred intends to amend the offer to seek to purchase 14.9% of Gentiva's outstanding shares, positioning Kindred as Gentiva's largest shareholder.”
A shareholder rights plan, adopted shortly after Kindred made its hostile offer, prevents Kindred from acquiring more than a 15% stake without permission.
Follow Beth Kutscher on Twitter: @MHbkutscher