Gentiva Rejects Kindred's Offer To Buy 15% Stake

(RTTNews) - Board of Gentiva Health Services Inc. (GTIV) Thursday rejected the offer from Kindred Healthcare Inc. (KND) to acquire 14.9 percent stake in the company for $16.00 a share in cash. Gentiva said it has also received another proposal to buy the whole company from an unnamed party.

The Board determined that the offer from Kindred significantly undervalues Gentiva's shares, is coercive and not in the best interests of stockholders. Gentiva Board recommended its stockholders to reject the offer and not tender their shares.

Further, Gentiva said it received a proposal from "a recognized owner, operator and investor in the sector" to acquire the company for $17.25 a share in cash. The Board has said it will review the alternative proposal carefully, in consultation with its financial and legal advisors, in due course.

In May, Kindred made an unsolicited offer to acquire Gentiva for a $14 a share, however Gentiva rejected the bid saying the offer significantly undervalued the company. In June, Kindred offered to buy 14.9 percent stake in Gentiva for $14.50 a share, which was sweetened to $16 earlier this week.