National Home Health Care rejects higher bid
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- January
- 17
Scarsdale-based National Home Health Care Corp. said today that its board of directors has rejected an offer to purchase all of the company’s outstanding stock for $12 a share in cash from Premier Home Health Care Services Inc. of Dayton, Ohio.
The board said the deal was not superior to an agreement it has with affiliates of Angelo, Gordon & Co., a New York City investment group. That deal values the company at $11.35 to $11.50 a share.
National Home Health Care is under fire from some investors who have criticized the sale process and the price.
Lawndale Capital Management LLC of Mill Valley, Calif., which owns 7 percent of National Home Health’s shares, has been trying to block the sale. In a filing yesterday with the U.S. Securities and Exchange Commission, Lawndale said “evidence suggests� that certain members of National Home Health’s management and board may have breached their fiduciary duties by proposing the agreement with Angelo, Gordon.
Last week, Salvatore Alternative, another investor who owns 8.5 percent of shares, said in a SEC filing that he believes that the company should conduct a competitive bidding process to find a partner and maximize the amount of money shareholders get in any deal.
National Home Health Care received the offer from Premier Home Health Care Services on Jan. 9. A special committee of the board met on Jan. 15 and unanimously recommended the full board reject the offer.
This entry was posted
on Wednesday, January 17th, 2007 at 5:32 pm by Julie Moran Alterio.
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