Saturday, July 5, 2014

Kindred-Gentiva War Continues


Kindred's pursuit of Gentiva continued with two recent SEC filings.  The first was a response to Gentiva's board declining Kindred's enhanced $14.50 offer.  In the letter Kindred's President stated:

In order to send a strong signal to the Gentiva board, Kindred continues to urge all Gentiva shareholders to tender their shares in support of its value enhancing offer. If a majority of the outstanding Gentiva shares are tendered prior to July 16, 2014, Kindred intends to amend the offer to seek to purchase 14.9% of Gentiva’s outstanding shares, positioning Kindred as Gentiva’s largest shareholder. 

Two days later Kindred extended the tender to July 23, 2014.   They did so to give the FTC time to review the proposed deal for antitrust purposes. 

Kindred labels their offer "value enhancing," while characterizing Gentiva's possible deal with Amedisys as "value destroying."  Both companies, and their legions of hired guns, are selling Wall Street hard on their perspective.  Wall Street values greed, so this development is hardly inspiring.

Huge resources and leadership attention are going to fight off Kindred and pursue other postacute care companies, like Amedisys.  The war has a month to go, maybe more.  Power, control, growth at all costs and greed have not made hospice better.  I'd hate to think what squaring it might do.

Anonymous (from Gentiva)

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