Kindred Healthcare’s bid for Gentiva expires Wednesday

The success of Kindred Healthcare’s contentious tender offer for shares of Gentiva Health Services could be revealed as soon as the offer expires Wednesday.

The Louisville, Ky.-based postacute-care operator has taken its bid for a reluctant Gentiva directly to the company’s shareholders, offering $14.50 per share. If a majority of shares are tendered, Kindred will buy a 14.9% stake in the Atlanta-based home health and hospice operator.

That stake is the maximum Kindred can acquire before running into Gentiva’s poison pill, put in place to thwart the hostile takeover.

Gentiva’s board and financial advisers have twice rejected Kindred’s offer. Gentiva last week released a preview of its second-quarter financial results, hoping to sway investors to stay the course. It highlighted adjusted earnings before interest, taxes, depreciation and amortization that are expected to increase 33% over the same period last year. Revenue is expected to increase nearly 20% year over year.

In an investor presentation, Gentiva argued that there is even more of an upside to be gained as it integrates last year’s acquisition of Harden Healthcare, a deal that closed in October. It’s also undertaking a restructuring initiative called One Gentiva.

Gentiva’s shares have traded above the tender offer price since it was announced June 16. They closed Friday at $15.82.