Is the Proposed Acquisition Best for Kindred Healthcare and Its Shareholders?
Robbins LLP’s investigation focuses on whether the board of directors at Kindred (KND) is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
As an initial matter, the $9.00 merger consideration represents a premium of only 4.7% based on Kindred’s closing price on December 15, 2017. This premium is significantly below the average one day premium of nearly 24.32% for comparable transactions within the past five years. Further, the $9.00 merger consideration is significantly below the target price of $11.00 set by an analyst at J.P. Morgan on November 7, 2017. In the last three years, Kindred traded as high as $24.66 on April 27, 2015, and most recently traded above the merger consideration – at $9.20 – on December 12, 2017.
Additionally, Kindred beat analyst estimates for adjusted net income and adjusted earnings per share in its last four quarters.
In light of these facts, Robbins LLP is examining Kindred’s board of directors’ decision to sell the company now rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects.