Done deal? Beverly Enterprise's sale nearly finalized.
Beverly Enterprise Inc., the nation's D largest nursing home chain, should have a new owner by the end of summer, according to according to
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3. company officials.
The Fort Smith, Ark.-based company--now known as BEI--put itself up for auction in March to prevent a hostile takeover Hostile Takeover
A takeover attempt that is strongly resisted by the target firm.
Hostile takeovers are usually bad news, as the employee moral of the target firm can quickly turn to animosity against the acquiring firm. . That process has since moved to the second and final round, according to Blair Jackson, Beverly's vice president of corporate communications Corporate communications is the process of facilitating information and knowledge exchanges with internal and key external groups and individuals that have a direct relationship with an enterprise. .
"We're essentially on a short list (of companies) that are going through the final bidding process," Blair said. "The next announcement we'll make is that a winner has been selected."
Blair said the company has not made public the list of initial bidders or the ones that made the final cut. At least a dozen companies were initially interested, according to BEI Bei (pā, bā), river, c.200 mi (320 km) long, formed by the union of two headstreams in the Nanling Mts., N Guangdong prov., S China. It flows S into the Xi River, E of Guangzhou, to form the Pearl River delta. .
One of the finalists is the very company that helped set up this scenario. According to Arnold Whitman, chief executive officer and co-chair of Formation Capital LLC (Logical Link Control) See "LANs" under data link protocol.
LLC - Logical Link Control , the Alpharetta, Ga.-based investment firm is in the second round and preparing to make its final bid. "We expect the process will take until August to finish," Whitman said.
In February, Formation made an unsolicited $1.5 billion offer to buy BEI. After the company's directors rejected the offer, Formation nominated its own candidates for board of directors, setting up a proxy battle. Both companies asked shareholders to vote for their respective boards; the matter was to be decided during BEI's annual meeting in April.
But in March, Beverly's board unanimously decided to put the company up for auction if Formation would end its proxy bid. In return, Formation would be included among the other bidders, according to BEI.
No matter who purchases the company, there will likely be some unhappy changes. "Under probably any scenario, there will be some positions eliminated," Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. William Floyd said in a meeting with BEI employees, according to a press release. He noted that the company's existing severance policies would remain in effect for a year after the new ownership takes over.
He added that the sales process would be lengthy. Even once the finalist has been chosen and an agreement signed, it will still take a couple months before the transaction can actually close, Floyd said.
BEI has 420 skilled nursing facilities skilled nursing facility
n. Abbr. SNF
An establishment that houses chronically ill, usually elderly patients, and provides long-term nursing care, rehabilitation, and other services. , assisted living as·sist·ed living
A living arrangement in which people with special needs, especially older people with disabilities, reside in a facility that provides help with everyday tasks such as bathing, dressing, and taking medication. centers and hospice/home care centers and employs 36,000 people in 25 states. The company had revenue of $1.98 billion in 2004.