Hospital operator Kindred Healthcare Inc went hostile with its $533 million offer for Gentiva Health Services Inc on Thursday, after Gentiva rejected the bid saying it expected to generate more value as a standalone provider of home healthcare services.Kindred said Gentiva was unwilling to discuss a potential deal to create a company with adjusted annual revenue of about $7.2 billion that could offer a full spectrum of services to an aging U.S. population.Analysts said the offer was a good "exit strategy" for Gentiva's shareholders as the company's stock has languished below Kindred's offer of $14 per share since August 2011, despite several large acquisitions to boost growth."We view (the rejection) as a meaningful error on (Gentiva) management's part, as our long experience tells us that it would take management a very long time to create that kind of increase in value," CRT Research analyst Sheryl Skolnick wrote in a note.
Gentiva Health Services, Inc. (Gentiva) is engaged in providing home health services and hospice services. Shares of GTIV traded higher by 60.66% or $5.18/share to $13.72. In the past year, the shares have traded as low as $7.35 and as high as $13.85. On average, 370323 shares of GTIV exchange hands on a given day and today's volume is recorded at 2159819.
Kindred Healthcare, Inc. is a healthcare services company that through its subsidiaries operates transitional care (TC) hospitals, inpatient rehabilitation hospitals (IRFs), nursing and rehabilitation centers, assisted living facilities, a contract rehabilitation services business and a home health and hospice business across the United States. Shares of KND traded higher by 4.79% or $1.0497/share to $22.97. In the past year, the shares have traded as low as $12.02 and as high as $26.72. On average, 550080 shares of KND exchange hands on a given day and today's volume is recorded at 283912.
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