Unknowns of Beverly sale have broad implications
The re-entry of Formation Capital as high bidder for Beverly Enterprises was just the latest turn in a twisting, eight-month saga that earlier had leaders of both companies trading barbs.At press time, it was uncertain whether Formation's bid of $12.90 per share – which displaced a bid accepted by Beverly less than two days earlier – would stand.
BEI, as Beverly became officially known earlier this year, said it could not terminate its deal with North American Senior Care until five days after it willingly received Formation's new bid. Beverly officials said that 10 entities had placed bids initially.
It was also unclear what would become of key elements of the once-biggest U.S. nursing home chain.
North American Senior Care said it was intent on retaining Beverly's senior care businesses and headquarters. But Formation Capital CEO Arnold Whitman said earlier this year that his group would sell off the service divisions and divide the nursing home operations, into regional entities. The latter would be a move that could have profound implications on the nursing home business on a wide scale, analysts say.