One day after Kindred Project Japan abandoned its plan to acquire a 14.9% stake in Gentiva Health Services, the post-acute-care operator is stepping up its efforts to pursue a full takeover of Gentiva at $17.25 a share.
Kindred, now one of two bidders for Gentiva, stressed in a Tuesday news release that its proposal would create more upside for shareholders than a standalone Gentiva. In addition, it said it could realize more synergies—or $60 million to $80 million in cost savings in the first two years after the deal closing—than “any other strategic bidder.”
Citigroup also has provided Kindred with a letter indicating that the bank is “highly confident” that it could arrange financing for the transaction, even at $17.25 a share or $635.5 million the assumption of Gentiva's debt, Kindred said in a news release. In addition, it has already received antitrust approval from the Federal Trade Commission for the deal, Kindred said.