Boston, MA 05\/16\/2014 (wallstreetpr) \u2013\u00a0Gentiva Health Services, Inc. (NASDAQ:GTIV)<\/b> turned down a $533 million takeover bid by Kindred Healthcare, Inc. (NYSE:KND)<\/b>. It claimed the proposal undervalues its prospects and lacks shareholder value. Instead the company wants to chart its own path to grow revenue and shareholder value.<\/p>\n
Gentiva provides a wide range of hospice and home health services that include occupational, skilled nursing, speech and physical therapies. The company believes its growth prospects are attractive and the sound management team that it has in place will help it create value for shareholders that Kindred cannot offer.<\/p>\n
The bid by Kindred comes at a time when the home health care industry is under scrutiny with widespread acquisitions that companies provide tailored care services to Medicare patients to artificially inflate reimbursements.<\/p>\n
The takeover proposal<\/b><\/p>\n
Kindred in the latest bid offered to pay $14 per share of Gentiva Health Services, Inc. (NASDAQ:GTIV), suggesting a 64 percent premium over the closing price of Gentiva on Wednesday. The bid values the company at $1.6 billion, including debt.<\/p>\n
Shares of Gentiva traded in the range of $30 per share in 2011 but have tumbled in recent times to trade below $15 per share.<\/p>\n
Kindred\u2019s takeover bid involves cash and stock transaction of which half of the price would be in cash and another half in stock. However, the company may also agree to a 100 percent cash transaction if the board of Gentiva Health Services, Inc. (NASDAQ:GTIV) accepts its bid.<\/p>\n
Hostile acquisition<\/b><\/p>\n
The move by Kindred to go public with its takeover bid for Gentiva came after a series of failed bid attempts. As such, the company deemed it right to involve the shareholders of Gentiva in the matter, if only that could support its proposal.<\/p>\n
According to Kindred CEO Paul J. Diaz, more than 20 percent of Gentiva Health Services, Inc. (NASDAQ:GTIV) shareholders are also investors in Kindred.\u00a0 As such, the company hopes that the management of Gentiva will consider its sweetened offer, however, it is not ruling out a hostile bid if a push comes to a shove.<\/p>\n
If the companies combine, the resulting company is estimated to generate about $7.2 billion in annual revenue.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 05\/16\/2014 (wallstreetpr) \u2013\u00a0Gentiva Health Services, Inc. (NASDAQ:GTIV) turned down a $533 million takeover bid by Kindred Healthcare, Inc. (NYSE:KND). It claimed the proposal […]<\/p>\n","protected":false},"author":13,"featured_media":22490,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[264],"tags":[2609,2250,2610,2251],"stock_ticker":[],"class_list":["post-22489","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-health","tag-gentiva-health-services-inc-nasdaqgtiv","tag-kindred-healthcare-inc-nyseknd","tag-nasdaqgtiv","tag-nyseknd","entry"],"acf":[],"yoast_head":"\n