Beverly CEO blasts takeover group
An investment group that recently launched a takeover bid of Beverly Enterprises Inc., shrouded its intentions, according to Beverly's president and CEO. In a blistering letter to Formation Capital, Bill Floyd accused the would-be acquirer of disguising its intentions.
"Your failure to deal candidly with us, your clearly hostile and secret acquisition of shares, your disorganized communications and your unjustified impatience are counterproductive to this process -- and hardly designed to create a setting for the constructive negotiations you purportedly desire," Floyd wrote.
The investor group, which along with Formation Capital, includes Appaloosa Management LP, Franklin Mutual Advisors LLC and Northbrook NBV LLC, recently offered to buy Beverly Enterprises, the Fort Smith, AR, company, in a $1.45 billion deal.
Beverly has since adopted a plan to prevent Formation Capital from anonymously purchasing Beverly stock.