A Delaware judge denied a major Louisville, Ky.-based Kindred Healthcare shareholder's motion to block Kindred's pending acquisition by Humana and two equity firms.
Brigade Capital Management, a top shareholder in Kindred, said in December 2017 TPG Capital; Welsh, Carson, Anderson & Stowe; and Humana's deal to acquire Kindred is "disappointing and grossly inadequate." The three firms agreed to buy Kindred for about $810 million in cash, or $9 per share. The total value of the deal is approximately $4.1 billion, including debt and other costs.
On March 27, the Court of Chancery of the State of Delaware ruled against Brigade Capital Management's motion, siding with Kindred and its board of directors.
"We are pleased that the court has denied all of the relief Brigade sought. As we have maintained, the Kindred board of directors acted in accordance with its fiduciary duties and in the best interests of all stockholders throughout the entirety of its 18-month long process to maximize stockholder value," Kindred said in a statement. "We continue to expect to complete the transaction this summer."
Kindred will hold a special meeting of stockholders March 29 to vote on the merger. Kindred urged all shareholders to vote in favor of the deal.
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