Strange Tony,
Kindred gave Gentiva shareholders a combination of cash and KND stock, which was valued at $18.46 on 1-30-15. Just over three years later Kindred executives crafted a deal selling the company for $9 per share.
Gentiva had an employee stock purchase plan. Any loyal employees who held onto their new Kindred stock took it on the chin as management turned their $5 in KND stock into $2.44.
That level of distress is attractive to financial rapscallions, who plan to make big money fluffing up Kindred for the put/call flip to Humana.
Anonymous (in unbalanced Kindred)
Indeedy. Most that were forced to pay taxes involuntary on the cash probably held onto the stock as it briefly went up only to plummet before being sold out. Like suicide, a permanent solution to a temporary problem. Many Gentiva folks in the ESPP bought stock north of $19. What clowns in Louisville worried about building new buildings and fighting over driveways. Great clinicians, et al sadly were burned believing in their Company.
ReplyDeleteWhen Ben Breier took over as CEO for Paul Diaz Kindred's stock closed at $21.53. Breier's leadership resulted in a $12.53 haircut. That's a 58% decline in share price.
ReplyDeletePay for deformance resulted in a multi-million dollar payday for Breier.