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Brower Piven Announces an Investigation of the Acquisition of RehabCare Group, Inc. by Kindred Healthcare, Inc.

^{Published on 2011-02-08 13:10:32 - Market Wire}
 

STEVENSON, Md.--([ BUSINESS WIRE ])--The law firm of Brower Piven, A Professional Corporation, has commenced an investigation into possible breaches of fiduciary duty to current shareholders of RehabCare Group, Inc. (aRehabCarea) (NYSE:RHB) and other violations of state law by the Board of Directors of RehabCare relating to the proposed acquisition of the company by Kindred Healthcare, Inc. (aKindreda). The firma™s investigation seeks to determine whether RehabCare and its Board breached their fiduciary duties by failing to maximize shareholder value.

On February 8, 2011, RehabCare and Kindred jointly announced that they had entered into a definitive merger agreement for RehabCare to be acquired by Kindred. Under the terms of the agreement, each stockholder of RehabCare common stock will receive $26 per share in cash and 0.471 of a share of Kindred common stock. Based upon the average value of Kindred common stock during the ten trading days preceding the signing of the merger agreement, each RehabCare stockholder will receive consideration with a current value of approximately $35 per share. However, Rehabcare has recently beat analystsa™ expectations, posting fourth-quarter earnings of $17.1 million, or $0.69 per share, up from $655,000 or $0.03 a share, a year earlier. Revenue also jumped 36% to $339.3 million. Analysts had predicted a per-share profit of $0.61.

If you currently own shares of RehabCare and would like to learn more about the investigation being conducted by Brower Piven, you may email or call Brower Piven, who will, without obligation or cost to you, attempt to answer your questions. You may contact Brower Piven by email at [ hoffman@browerpiven.com ], by calling 410/415-6616, or at Brower Piven, A Professional Corporation, 1925 Old Valley Road, Stevenson, Maryland 21153. Attorneys at Brower Piven have combined experience litigating securities and other class action cases of over 60 years.