Kindred Healthcare Sends Letter to Gentiva

  Kindred Healthcare Sends Letter to Gentiva  Business Wire  LOUISVILLE, Ky. -- June 27, 2014  Kindred Healthcare, Inc. (“Kindred” or the “Company”) (NYSE:KND) today sent the following letter to the board of directors of Gentiva Health Services, Inc. (“Gentiva”)(NASDAQ:GTIV):        June 27, 2014          Rodney Windley     Executive Chairman     Gentiva Health Services, Inc.     3350 Riverwood Parkway, Suite 1400     Atlanta, GA 30339          Tony Strange     Chief Executive Officer, President and Director     Gentiva Health Services, Inc.     3350 Riverwood Parkway, Suite 1400     Atlanta, GA 30339          Dear Rod and Tony:          We are writing to you, and the entire board of directors of Gentiva,     regarding the reports in the marketplace that Gentiva may be pursuing an     acquisition of Amedisys (NASDAQ:AMED). We are concerned that, while     refusing to discuss Kindred’s highly attractive cash offer, the Gentiva     board may be pursuing a course that would disenfranchise its shareholders     through a value-destroying and highly levered transaction with Amedisys.          We believe it is incumbent on the Gentiva board, in fulfilling its     fiduciary duty to its shareholders, to sit down with Kindred immediately     and explore our value-enhancing proposal before entering into any     agreement that could impair the value of, or preclude, a Kindred-Gentiva     combination.          As you know, our all-cash offer of $14.50 per share represents a 70%     premium to Gentiva’s closing share price on May 14, 2014 (the day prior to     Kindred making its proposal public), and would deliver immediate and     certain value to Gentiva shareholders. In addition, we have expressed a     willingness to offer cash and stock in a structure that would allow     Gentiva shareholders to participate further in the synergies and upside     potential of the proposed combination (which many Gentiva shareholders     have told us they would prefer). We have also indicated that we would be     prepared to consider increasing the value of our offer if Gentiva were to     commence discussions and demonstrate additional value.          Even before the Amedisys reports were brought to our attention, we     listened with interest to the remarks of Gentiva’s Chief Financial     Officer, Eric Slusser, at the Wells Fargo Healthcare Conference,     particularly his statements indicating that a vertically integrated     post-acute care provider would be best positioned to deliver effective     care in the long run. This is one of the many reasons why we believe the     proposed combination of Kindred and Gentiva makes so much sense.          A Kindred-Gentiva combination would offer the benefits of vertical     integration and position our combined company to provide integrated     post-acute care at lower cost to a much broader range of patients. As both     Gentiva and Amedisys focus exclusively on home health and hospice care,     such a combination would not similarly advance the interests of patients     or position Gentiva at the forefront of changes to the U.S. healthcare     delivery system.          We note that Kindred has an outstanding track record of successfully     integrating acquisitions, including most recently RehabCare and Senior     Home Care. In contrast to Kindred, both Gentiva and Amedisys have     experienced integration challenges in the past. We believe the combination     of Kindred and Gentiva would have minimal execution risk and a high     likelihood of swift and seamless integration.          Kindred remains firmly committed to the proposed combination with Gentiva,     but we take our responsibilities to our shareholders very seriously. If     Gentiva were to move forward with any other transaction, Kindred would     review the outstanding $14.50 cash offer and consider revising or     withdrawing it.          As we have stated repeatedly over the last six weeks, we would strongly     prefer to work with the Gentiva board to reach a negotiated agreement. We     have repeatedly requested meetings with you, and are prepared to meet with     you and your advisors as soon as is practicable. We once again call upon     your board to immediately commence good-faith discussions with Kindred, so     that our companies can move forward with a combination that serves the     interests of all our stakeholders.          Sincerely,          Paul J. Diaz     Chief Executive Officer     Kindred Healthcare, Inc.          cc: Phyllis R. Yale, Chair of the Board       Forward-Looking Statements  This press release includes forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding the Company’s ability to complete the Offering, the Company’s anticipated use of proceeds from the Offering, the Company’s proposed acquisition, and statements containing the words such as “anticipate,” “approximate,” “believe,” “plan,” “estimate,” “expect,” “project,” “could,” “would,” “should,” “will,” “intend,” “may,” “potential,” “upside,” and other similar expressions. Statements in this press release that are not historical facts are forward-looking statements that are estimates reflecting the best judgment of the Company based upon currently available information.  Such forward-looking statements are inherently uncertain, and stockholders and other potential investors must recognize that actual results may differ materially from the Company’s expectations as a result of a variety of factors, including, without limitation, those set forth in the Company’s Annual Report on Form 10-K and in its reports on Forms 10-Q and 8-K. Such forward-looking statements are based upon management’s current expectations and include known and unknown risks, uncertainties and other factors, many of which the Company is unable to predict or control, that may cause the Company’s actual results, performance or plans to differ materially from any future results, performance or plans expressed or implied by such forward-looking statements. These statements involve risks, uncertainties and other factors detailed from time to time in the Company’s filings with the SEC.  Many of these factors are beyond the Company’s control. The Company cautions investors that any forward-looking statements made by the Company are not guarantees of future performance. The Company disclaims any obligation to update any such factors or to announce publicly the results of any revisions to any of the forward-looking statements to reflect future events or developments.  Additional Information  This press release is provided for informational purposes only and does not constitute an offer to purchase or the solicitation of an offer to sell any securities of Gentiva. The solicitation and offer to buy Gentiva common stock have been made pursuant to an offer to purchase and related materials, as they may be amended from time to time. Investors and shareholders should read those filings carefully as they contain important information, including the terms and conditions of the offer. The offer to purchase and related materials, as well as Kindred’s other public filings, have been filed with the SEC and may be obtained without charge at the SEC’s website at and at Kindred’s website at The offer to purchase and related materials may also be obtained for free by contacting the information agent for the tender offer, D.F. King & Co., Inc. at (212) 269-5550 (collect) or (800) 859-8508 (toll-free) or by email at  About Kindred Healthcare  Kindred Healthcare, Inc., a top-150 private employer in the United States, is a FORTUNE 500 healthcare services company based in Louisville, Kentucky with annual revenues of $5 billion and approximately 63,000 employees in 47 states. At March 31, 2014, Kindred through its subsidiaries provided healthcare services in 2,313 locations, including 100 transitional care hospitals, five inpatient rehabilitation hospitals, 99 nursing centers, 22 sub-acute units, 157 Kindred at Home hospice, home health and non-medical home care locations, 105 inpatient rehabilitation units (hospital-based) and a contract rehabilitation services business, RehabCare, which served 1,825 non-affiliated facilities. Ranked as one of Fortune magazine’s Most Admired Healthcare Companies for six years in a row, Kindred’s mission is to promote healing, provide hope, preserve dignity and produce value for each patient, resident, family member, customer, employee and shareholder we serve. For more information, go to  Contact:  Media Kindred Healthcare, Inc. Susan Moss, 502-596-7296 Senior Vice President, Marketing and Communications or Joele Frank, Wilkinson Brimmer Katcher Andy Brimmer / Andrew Siegel 212-355-4449 or Investors and Analysts Kindred Healthcare, Inc. Hank Robinson, 502-596-7732 Senior Vice President, Tax and Treasurer or D.F. King & Co., Inc. Jordan Kovler / Kristian Klein 212-232-2247  
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