NEW YORK (AP) -- Shares of Gentiva Health Services jumped Friday after the home health and hospice care provider said an undisclosed party has made an offer to acquire it that is higher than a bid from Kindred Healthcare.
Gentiva said the bid values it at $17.25 per share, or about $635.5 million. It did not disclose the name of the bidder but said the offer comes from "a recognized owner, operator and investor in the sector." The Atlanta company said it will review the proposal.
Gentiva Health Services Inc.'s stock rose $1.78, or 11.5 percent, to $17.25 in morning trading.
Kindred Healthcare Inc. went public with an offer to buy Gentiva in May. Kindred initially bid $14 per share and later raised that to $14.50 per share, or $534.2 million based on the company's current share count. Gentiva rejected both of those offers, and more recently Kindred said it would pay $16 per share for a 14.9 percent stake in the company. That would cost it about $88 million.
On Friday Gentiva advised shareholders not to tender their shares in support of Kindred's newest bid.