Brower Piven Announces an Investigation of the Acquisition of RehabCare Group, Inc. by Kindred Healthcare, Inc.
February 08 2011 - 11:08AM
Business Wire
The law firm of Brower Piven, A Professional Corporation, has
commenced an investigation into possible breaches of fiduciary duty
to current shareholders of RehabCare Group, Inc. (“RehabCare”)
(NYSE:RHB) and other violations of state law by the Board of
Directors of RehabCare relating to the proposed acquisition of the
company by Kindred Healthcare, Inc. (“Kindred”). The firm’s
investigation seeks to determine whether RehabCare and its Board
breached their fiduciary duties by failing to maximize shareholder
value.
On February 8, 2011, RehabCare and Kindred jointly announced
that they had entered into a definitive merger agreement for
RehabCare to be acquired by Kindred. Under the terms of the
agreement, each stockholder of RehabCare common stock will receive
$26 per share in cash and 0.471 of a share of Kindred common stock.
Based upon the average value of Kindred common stock during the ten
trading days preceding the signing of the merger agreement, each
RehabCare stockholder will receive consideration with a current
value of approximately $35 per share. However, Rehabcare has
recently beat analysts’ expectations, posting fourth-quarter
earnings of $17.1 million, or $0.69 per share, up from $655,000 or
$0.03 a share, a year earlier. Revenue also jumped 36% to $339.3
million. Analysts had predicted a per-share profit of $0.61.
If you currently own shares of RehabCare and would like to learn
more about the investigation being conducted by Brower Piven, you
may email or call Brower Piven, who will, without obligation or
cost to you, attempt to answer your questions. You may contact
Brower Piven by email at hoffman@browerpiven.com, by calling
410/415-6616, or at Brower Piven, A Professional Corporation, 1925
Old Valley Road, Stevenson, Maryland 21153. Attorneys at Brower
Piven have combined experience litigating securities and other
class action cases of over 60 years.
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