Kindred Healthcare Proposes To Buy Gentiva Health Services For $14/Shr

(RTTNews) - Kindred Healthcare Inc. (KND) announced Thursday that it has proposed to acquire all of the outstanding shares of common stock of Gentiva Health Services Inc. (GTIV) for a combination of $7.00 per share in cash and $7.00 of Kindred common stock. Kindred also offered to increase its offer to 100% cash if the Gentiva Board so elects.

Based upon the closing price of Gentiva's common stock on May 14, 2014, Kindred's proposal would provide Gentiva shareholders with consideration currently valued at approximately $14.00 per share, representing a 64% premium over the closing price of Gentiva common stock on May 14, 2014, and a 59% premium over Gentiva's 60-day volume-weighted average closing price.

The proposed price for Gentiva implies a total equity value of approximately $533 million. With the assumption of Gentiva's debt, the transaction would be valued at approximately $1.6 billion.