Gentiva rejects Kindred's final offer as new suitor joins mix

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.

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