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Kindred raises bid for Gentiva to $1.7B, plans 9M-share offering

  • Gentiva Health Services (GTIV) +4.6% AH after Kindred Healthcare (KND) sweetens its offer for the home health and hospice company to $14.50/share, $0.50 more than the $14/share it proposed last month; KND -1.6% AH.
  • The new bid brings the value of the deal to $573M, although the total package could reach as much as $1.7B if debt is included.
  • KND says it plans to offer at least 9M common shares to raise funds for the proposed acquisition; if the takeover isn't completed, KND says it would use the funds toward other potential acquisitions or for other purposes including paying down debt.
  • KND also reaffirms its 2014 guidance, expecting income from continuing operations of $1.05-$1.25 per diluted share vs. analyst consensus $1.16 and consolidated revenues of ~$5.2B vs. $5.14B consensus.
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