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).