SAN DIEGO & LOUISVILLE, Ky.--(BUSINESS WIRE)--Shareholder rights attorneys at Robbins Arroyo LLP are investigating the proposed acquisition of Kindred Healthcare, Inc. (NYSE: KND) by a consortium of companies consisting of TPG Capital, Welsh Carson Anderson & Stowe LP, and Humana Inc. (NYSE: HUM) (together, the "consortium"). On December 19, 2017, Kindred and members of the consortium announced the signing of a definitive merger agreement pursuant to which Kindred will be acquired by the consortium. Under the terms of the agreement, Kindred shareholders will receive $9.00 for each share of Kindred common stock.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/kindred-healthcare-inc/
Is the Proposed Acquisition Best for Kindred Healthcare and Its Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board of directors at Kindred 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 Arroyo 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.
Kindred shareholders have the option to file a class action lawsuit to ensure the board of directors obtains the best possible price for shareholders and the disclosure of material information. Kindred shareholders interested in information about their rights and potential remedies can contact attorney Leo Kandinov at (800) 350-6003, lkandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The law firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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