Kindred Launches Hostile Tender Offer for Gentiva

Tickers in this article: GTIV KND MS

NEW YORK (The Deal) -- Kindred Healthcare is having another go at acquiring its reluctant target, Gentiva Health Services , by launching an all-cash tender offer to acquire all outstanding shares of the company's common stock for $14.50 per share.

Kindred, the largest post-acute care health services provider in the U.S., announced its renewed interest Monday after the market close.

The new bid is an all-cash offer for a total equity value of about $573 million, which comes to $1.7 billion when Gentiva's debt is added in. If Gentiva refuses, Kindred said it "intends to amend the offer to seek to purchase 14.9% of Gentiva's outstanding shares," thus overcoming Gentiva's poison pill by becoming its largest shareholder.

The 14.9% share purchase would cost Kindred about $80 million, according to an SEC filing.

Gentiva, of Atanta, is the nation's largest provider of home health and hospice services. Together, the two companies could create a comprehensive platform to develop the value- and risk-based service models that experts believe the Affordable Care Act will require.

That's why Louisville-based Kindred is champing at the bit to get control of the company. "We remain confident that uniting our two highly complementary businesses would create a unique platform for coordinated patient care and deliver compelling clinical, strategic and financial benefits for all stakeholders," Kindred chairman and CEO Paul Diaz said in a Monday conference call with investors.