Saturday, May 24, 2014

Gentiva Prescribes Poison Pill


Reuters reported on Gentiva's poison pill, which the company adopted more than a week after rejecting a $533-million hostile bid from LTAC hospital operator Kindred Healthcare.   "Poison pills" are designed to stop hostile takeovers by triggering the issue of new shares that dilute the holdings of investors who exceed a set threshold.

Gentiva set a 15 percent trigger for the rights plan, which will expire on May 20, 2015.  Gentiva rejected Kindred's $14-per-share offer on May 15, saying it undervalued the company.  Kindred, the water glass is in your lawyers' court.

Anonymous (from Gentiva)

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