Rival suitor issues higher bid for Genesis
A competing bidder has topped a joint venture company's offer for Genesis HealthCare Corp.Fillmore Capital Partners LLC, which purchased Beverly Enterprises Inc. last year, has offered to buy the nursing home chain for $64.75 per share in cash. That eclipses a bit of $64.25 placed by a joint venture of Formation Capital LLC and JER Partners.
Shareholders of Genesis are scheduled to vote on the joint venture bid next Friday. The Genesis board said in a release Wednesday that it will review the new proposal. Still, it said it stands in favor of the joint venture transaction.
Drumm Investors, which is affiliated with Fillmore, filed a lawsuit against Genesis in March, alleging breach of contract during the bidding process. Drumm said in the suit that during the bidding process it had presented the best possible "final, binding offer" for Genesis. But some members of the Genesis board preferred the second-place bidder, Formation Capital, and used Drumm as a "stalking horse" to elicit a higher bid from Formation.