Home Health & Hospice Week

Industry Note:

Kindred Faces Shareholder Suit To Stop Sale

A hedge fund investor in Kindred Healthcare Inc. has filed a lawsuit to stop the company's acquisition by Humana and two private equity firms, reports the Louisville Business First newspaper. New York City-based Brigade Capital Management, which controls about 6 percent of Kindred's stock, filed the suit in Delaware state court. The deal would shortchange shareholders, Brigade said in a letter to Kindred (see Eli's HCW, Vol. XXVI, No. 2).

The larger Kindred deal is for $4 billion, but the Kindred at Home portion is for $800 million.

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