Kindred Healthcare Inc (KND.N) will buy peer RehabCare Group Inc (RHB.N) for about $900 million in cash and stock, to create one of the largest U.S. firms providing care for patients recovering from life-threatening illness, sending Kindred shares to a two-year high. The deal gives Louisville, Kentucky-based Kindred a deeper geographical footprint and a diversified array of services in post-acute care -- from long-term acute care hospitals to nursing and rehabilitation centers. Each RehabCare shareholder will get $26 a share in cash and 0.471 of a share of Kindred common stock, which is about $35 for every RehabCare share based on Kindred's 10-day average closing price.
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