Gentiva Health Services (NASDAQ:GTIV) has rejected Kindred Healthcare’s (NYSE:KND) latest bid to buy the company, saying it significantly undervalues Gentiva and is not in the best interests of its shareholders.
In the most recent bid, Kindred offered to acquire all outstanding shares of Gentiva’s common stock for $14.50 per share, making the deal a $1.7 billion acquisition. The offer represented a 70% premium over Gentiva’s closing share price on May 14, the day prior to Kindred’s original offer.
But Gentiva has remained largely firm in its rejections, this time saying that Kindred’s offer is opportunistic in exploiting a temporary decrease in Gentiva’s stock price, which rose to $15.50 Tuesday afternoon.
The rejection follows Kindred’s attempt Monday to stop Gentiva’s pursuits of acquiring Amedisys Inc. (NASDAQ:AMED), the largest home health provider in the U.S. This acquisition, Kindred wrote in a letter, would disenfranchise Gentiva shareholders and compromise a Kindred-Gentiva combination.
Written by Emily Study