Executives at Beverly Enterprises Inc. (BEI) rejected a purchase offer from an investment group Thursday, saying the proposal was “not in the best interest” of the company or its shareholders.
“In the board’s view, your suggested transaction structure fails to recognize the greater overall value that results from the close fit between BEI’s skilled nursing facilities and our service operations,” Beverly President and CEO William Floyd wrote in a letter Thursday to Formation Capital CEO Arnold Whitman.
Last week, Formation Capital filed documents with the Securities and Exchange Commission saying it had offered Beverly $11.50 per share, or $1.2 billion for the Fort Smith, AR-based nursing home chain. Formation Capital, which includes Appaloosa Management LP, Franklin Mutual Advisors LLC and Northbrook NBV LLC, owns 8% of the company.
Floyd released a letter to Whitman last week accusing the investor group of acting in bad faith in trying to take over Beverly. In Thursday’s statement, he said the investors had given few details about a questionable financing plan, while criticizing other parts of the purchase proposal.
