Formation joint venture raises bid for Genesis

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A private equity joint venture raised its bid for Genesis HealthCare Corp., nearly equaling the proposal of a rival company.

Affiliates of Formation Capital Partners LLC and JER Partners amended their merger agreement with Genesis to $65.25 per share, or $1.77 billion. Just days earlier, Fillmore Capital Partners raised its bid to $65.25. As part of the amended Formation agreement, the purchase price will increase by 9% a year if the transaction is not completed before July 31. The Fillmore proposal is not superior to the Formation bid, the Genesis board said, according to a company release.

The board of Genesis was scheduled to vote on the Formation proposal this Friday. It will now take place on May 11. Fillmore, an affiliate of which purchased Beverly Enterprises Inc. last year, launched an 11th hour bid for Genesis in late April.