Brigade Capital Management, the holder of a 5.8% stake in Kindred Healthcare Inc., said it opposes a takeover of the medical-facility operator and home care provider by a group of investors including health insurer Humana Inc., because the price is too low.
Humana and private equity firms TPG Capital and Welsh Carson Anderson & Stowe agreed to buy Kindred for $9 a share on Dec. 19. Kindred's shares closed at $8.60 on Dec. 15, the last trading day before reports emerged of the potential deal, and had risen as high as $11.70 earlier this year.
The $9-a-share offer is "grossly inadequate" and doesn't account for efforts Kindred has made to improve operations, Brigade said in a letter to Kindred's chief executive officer. Kindred should remain an independent firm, at least until the turnaround effort can take hold, the investor said.
