Suitor sweetens Genesis offer
Affiliates of Formation Capital LLC and JER Partners have agreed to pay more for Genesis HealthCare Corp. They raised the price to $64.25 per share in cash, up from $63 a share.The 2% increase represents "our 'best and final' price," said Arnold Whitman, chief executive officer of Formation. Shareholders, who were planning to vote on the previous terms of the deal yesterday, are now scheduled to consider the latest offer on May 4.
Under the amended agreement, the termination fee payable to Formation and JER has been lowered to $15 million from $50 million. A week ago, Northbrook GH LLC, which owns a 5% stake in Genesis, wrote a letter saying the $50 million breakup fee discourages other potential bidders.