Saturday, October 4, 2014

Gentiva: Trick or Treat?


September passed without a deal announcement.  It's now an October event.  Recent instability in the stock market could spill into the debt arena.  This would not concern Kindred, given it raised over $200 million in cash from a June secondary offering:

Kindred Healthcare Inc (NYSE: KND) priced a 9,000,000 share secondary stock offering at $23.75 per share. Buyers in that offering made a considerable investment into the company, expecting that their investment would go up over the course of time. 
Kindred stock closed at $20.04 on Friday, down $3.71 a share from the secondary.

The unnamed suitor, Kindred's competitor, would likely need to borrow a significant amount to close any deal priced at $17.25 a share or higher.  

Recent trading in Gentiva has been at a discount to this announced price.  The stock closed yesterday at $16.74 per share, a 51 cents discount to the last publicly shared offer.  This means there is some uncertainty as to a deal being completed at the $17.25 offer.

Employees know that costs are being mircro-managed, which means people are as well.  Many survived the Ides of September.  How many will get through Shock-tober?

Anonymous (from Gentiva)


  1. Word in the SBU is that its a done deal with Kindred, the white knight is out.

    Maybe it's trickle down from Kansas, but considering the sources from whom this information has come, sounds reliable enough.

  2. At KCFSU one person said in their team meeting it was said they doubt that collections would be moved to KY and it's safe to presume an offer is on the table. I was out Friday and come in today to find out someone on my team quit Friday without notice. Day-um!

  3. Ha ha! I called it over a week ago! Sold to Kindred. Please let the layoffs start with management!

    1. Wishful thinking. You know as well as I do, they cut from the middle. And transfer responsibility to those left over (lower paid, newer, less experienced).