Genesis investors approve merger

0 Comments | Philadelphia Inquirer, The, May, 2007 | by Stacey Burling Inquirer Staff Writer

Shareholders of Genesis HealthCare Corp. approved a merger agreement yesterday between the Kennett Square company and Formation Capital L.L.C. and JER Partners, Genesis announced.

The vote capped a lengthy and contentious bidding process in which some stockholders and a rival bidder, Fillmore Capital Partners, accused Genesis leaders of favoring Formation Capital/JER even though Fillmore often offered more.

Formation Capital/JER will pay about $1.9 billion, including the assumption of $475 million in debt, for Genesis, which owns more than 200 nursing homes and assisted-living centers in 13 Eastern states. Formation/JER agreed to pay $69.35 per share in cash. If the deal is not completed by July 31, the...