Kindred Healthcare investor suffers setback in lawsuit seeking to block merger
A major shareholder of Louisville-based Kindred Healthcare suffered a setback in its attempt to block the company’s proposed sale.
LOUISVILLE, Ky. (WDRB) -- A major shareholder of Louisville-based Kindred Healthcare suffered a setback in its attempt to block the company’s proposed sale, Kindred said in a regulatory filing Friday.
A judge in Delaware on Thursday denied “all but one” of the claims asserted by New York-based Brigade Capital Management in its request to fast-track a lawsuit, filed earlier this month, in which Brigade seeks to block Kindred’s sale from closing as scheduled this summer.
The Delaware Court of Chancery allowed the expedited gathering of evidence for only some “limited and targeted” issues in the case, Kindred said, adding that the company was “pleased” with the ruling.
The Delaware court scheduled a status conference on the lawsuit on March 22, one week before Kindred’s special shareholders meeting to vote on the proposed sale March 29, according to Kindred’s filing.
Brigade Capital Management, which controls nearly 6 percent of Kindred’s stock, declined to comment.
The investment firm has criticized the proposed sale for short-changing Kindred’s shareholders.
Louisville-based Humana and a pair of private equity firms plan to buy Kindred for $9 per share, or about $780 million, and to split the company.
Humana would eventually own of Kindred’s home care business, while the surviving Kindred Healthcare would be a specialty hospital company owned by the private equity firms.