Gentiva Is Cheap But Still Hard To Get Excited About
Oct. 9, 2014, 9:27 AM
- Kindred Healthcare (NYSE:KND) acquires Gentiva Health Services (NASDAQ:GTIV) for $19.50 per share in a cash-and-stock transaction. Under the terms of the agreement, Gentiva shareholders will receive $14.50 per share in cash and 0.257 shares of KND stock ($5.00 based upon the mutually-agreed-upon fixed exchange ratio).
- The deal should be finalized in Q1 2015.
Jul. 21, 2014, 5:42 PM
Jul. 18, 2014, 9:02 AM
Jul. 17, 2014, 6:01 PM
- Gentiva Health Services (NASDAQ:GTIV) +9.9% AH after rejecting Kindred Healthcare's (NYSE:KND) latest offer to buy a stake, saying it received a more valuable bid for the whole company from a party it identifies only as "a recognized owner, operator and investor in the sector."
- In rejecting KND's $16/share offer for a 14.9% stake, GTIV says the new suitor offered $17.25/share for all of its shares.
- GTIV says its board and advisers will review the new bid in due course, while saying KND's offer for the 14.9% position "would only be used as an irritant."
Jul. 1, 2014, 10:24 AM
- The BOD of Gentiva Health Services (GTIV +1.3%) unanimously rejects Kindred Healthcare's (KND +0.1%) $14.50 per share cash offer saying it significantly undervalues the company and is not in the best interests of GTIV shareholders. The BOD also notes that KND's latest offer is not materially different from its earlier offers made on April 14 and May 5, which the BOD also rejected.
- The specific reasons for the rejection are: the offer is opportunistic in exploiting a temporary decrease in GTIV's stock price; the offer significantly undervalues Gentiva; the offer attempts to improve Kindred's operations in home health and hospice at the expense of Gentiva's shareholders and it has received oral inadequacy opinions and advice from its financial advisors.
- Schedule 14D-9
Jun. 27, 2014, 6:45 PM
- In a letter to Gentiva's (GTIV +1.4%) CEO and Chairman, Kindred Healthcare (KND +1.3%) Chief Paul J. Diaz implores them to sit down at the negotiating table to discuss what he perceives as a very lucrative $14.50 per share offer. Mr. Diaz seems a bit insecure about closing the deal considering Gentiva's refusal to discuss his offer and market rumors that Gentiva is mulling a takeover of Amedisys (AMED +29.8%).
Jun. 16, 2014, 5:58 PM
- 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.
May 15, 2014, 7:00 AM
- Gentiva Health Services (GTIV) has turned down a $533M takeover bid from Kindred Healthcare (KND), which offered $14 per share in a proposal that would be equally split in cash and stock.
- The offer, which is valued at $1.6B including debt, represents a 64% premium to Gentiva's closing price yesterday of $8.54.
- Shares +55% premarket. (PR)
Sep. 19, 2013, 6:37 AM
- Gentiva Health Services (GTIV) will acquire Harden Healthcare's home health, hospice, and community care businesses for ~$408.8M ($355M in cash and $53.8M in stock).
- The cash portion will be funded by "available cash and a new $855M term loan facility" which the company is raising to complete the deal and refinance existing term loans.
- After the purchase, GTIV's revenue will be 49% home health, 41% hospice, and 10% community care.
- CEO Tony Strange calls Harden "a great strategic fit [that will] provide significant long-term value for shareholders." (PR)
Gentiva Health Services Inc is a provider of home health services and hospice services serving patients throughout the United States. Its segments include Home Health segment, Hospice segment and Community care.
Industry: Home Health Care
Country: United States
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