Companies in the News
Companies in the News
Amedisys unsure of fate of tender offer
Amedisys (Baton Rouge, LA) previously announced that on Dec. 21, 1998, it had been informed that The Bradford Group, a Louisiana limited liability company, had initiated an unsolicited tender offer for all of the outstanding shares of Amedisys common stock. However, as of last week, Amedisys officials said, the company has not filed any tender offer materials with the Securities and Exchange Commission (Washington) or, apparently, otherwise commenced a tender offer in accordance with applicable law. As a result of the confusion caused by the purported tender offer, and in light of the apparent legal and other deficiencies of such purported offer, Amedisys has contacted a principal of The Bradford Company, asking him to clarify and discuss the Group’s intentions, officials said. Amedisys asked The Bradford Group how it would expect to finance the offer and why it had not sought a negotiated transaction with Amedisys. The principal indicated, Amedisys said, that he would not meet with representatives from Amedisys within the next two weeks.
Amedisys requests its shareholders not to make a determination as to whether to accept or reject the purported tender offer, or to tender any shares held by them, until Amedisys has determined the validity and nature of such offer and advised its shareholders of its position. The company expects to make a determination and so advise its shareholders on this matter, subject to applicable law, as soon as reasonably practicable. In addition, Amedisys said its presently considering whether to institute any legal proceedings against The Bradford Group with respect to this matter.
"The company is remaining firmly focused on its commitment to growth and capturing mass market share," said William Borne, Amedisys’ CEO. "Our mission is to be the low cost provider of home healthcare services, while enhancing our profitability in our ambulatory surgery center and infusion therapy divisions."
Apria shares rise after rate upgrades
Shares of Apria Healthcare (Costa Mesa, CA) have jumped after rating upgrades from Prudential Securities (New York) and BT Alex. Brown (New York). In a note to investors, BT Alex. Brown upgraded Apria to strong buy from buy, while Prudential changed its rating to strong buy from accumulate. Both investment banks said the upgrades were prompted by a faster-than-expected turnaround and head count reductions. Prudential analyst Charles Boorady said in a report, "We now believe Apria will report a profit in the fourth quarter of 1998," adding that his previous estimate called for Apria to turn profitable in 2Q99.
"Management’s strategy of extricating itself from unprofitable contracts and reducing operating expenses seems to be working and generating return to profitability six months ahead of schedule," said BT Alex. Brown’s Peter Emch.
In addition, according to a report in The Wall Street Journal, a recent round of insider purchases could help Apria on its road to recovery. The Journal reported that from Oct. 26 to Nov. 30, eight executives at Apria bought 1.8 million shares valued at more than $15 million, according to CDA/Investnet. Apria director David Batchelder and Chairman Ralph Whitworth, representing Relational Investors, which buys stock in underperforming companies and acts as a catalyst to create changes within those companies, bought 1.7 million shares from Nov. 16 to Nov. 19, The Journal reported. Relational Investors hired Philip Carter in May as Apria’s new CEO to help stabilize the company.
Patient Care buys home care operations
Chemed’s (Cincinnati) Patient Care (West Orange, NJ) subsidiary has acquired the assets of the Columbus, OH, franchise of Western Medical Services. The business, which will operate under the name Patient Care Medical Services, generated revenues exceeding $5 million in 1998. The purchase price for the business was not disclosed. The new company will offer a wide range of home care services through home health aides, certified nursing assistants, licensed nurses, and homemakers.
NYC offers services to Medicaid patients
New York Health Care (NYC; Brooklyn, NY) said it, under a contract with the City of New York, has begun to provide home care services for Medicaid patients. Gross annualized revenues from this contract are estimated at $11 million over the one-year contract term, which nearly doubles NYC’s state revenue and, on an overall basis, increases revenue by more than 50%, the company said. The contract runs through Dec. 31, 1999, with an option by the city to renew for an additional one-year term.
Option Care adds IV therapy to Lincoln Re
Option Care (Bannockburn, IL) and Lincoln Re (Fort Wayne, IN) have added in-home intravenous therapy to Lincoln’s Special Alternatives portfolio of medical claim management programs and consulting services. The in-home IV therapy will be offered to Lincoln reinsurance clients providing coverage to 6 million people in the United States.
The agreement, say Lincoln officials, gives Lincoln’s reinsurance clients access to Option Care’s discounted pricing structure and efficient, high-quality, in-home IV healthcare from more than 150 locations in the United States.
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