Our Products can help your organization stay educated and compliant. Shop Now >


Shareholder Opposition Unlikely to Derail Kindred Deal

Posted on Monday, January 8, 2018 1:54 PM

Brigade Capital, who owns a 5.8% stake in Kindred said it would vote against the deal under the current terms in a letter dated December 27, 2017.   “The deal splits Kindred into two businesses. Humana, along with private equity firms TPG Capital, Welsh, Carson, Anderson & Stowe, would own Kindred’s home health care, hospice and community-based business, Kindred at Home. Kindred’s rehabilitation and hospital business will be owned by the private equity groups.

The deal is worth an estimated $4.1 billion and values Kindred’s common stock at $9 per share, approximately a 27% premium to Kindred’s 90-day volume weighted average price at the time of the announcement.”

Brigade Capital feels that the valuation was too low based on the company’s positive outlook and earnings power going forward.  While the letter contains strong opposition, it does not mention any forthcoming legal action.  Humana has not responded to the letter.

About Corridor

Corridor is a trusted home health and hospice consulting partner to agencies both large and small. We provide the most up-to-date comprehensive homecare industry educational resources and consulting available.

We specialize in delivering better revenue cycle management solutions, coding and documentation review services, regulatory compliance, and healthcare consulting.

For the most important industry updates and news that impacts home health and hospice, please make sure to sign up for our weekly newsletter to receive the latest up-to-date industry information direct to your inbox!

For additional information, please contact Corridor at 1-866-263-3795

Go Back