Deal gives Sun Healthcare shares 37% boost
LOS ANGELES (MarketWatch) -- While the broader market tumbled, shares of
Sun (SUNH) jumped by $2.26 to $8.40 in the wake of the deal, in which Genesis will acquire Sun's assets for $273.3 million. There appears to be just a little more room for continued upward stock movement, as the deal is worth $8.50 a share, a 43% premium over the average closing price of $5.46 over the 30 days prior to the deal's Wednesday announcement.
The two companies generated $4 billion in revenue in 2011 and operate more than 420 facilities. They also have more than 75,000 employees.
Genesis sold off its real-estate holdings to
Sabra shares climbed 3% in recent action to $16.74, a gain of 49 cents. Health Care REIT shares were flat at $57.
The deal gave a lift to at least one other nursing-home operator, Skilled Healthcare Inc. (SKH) . Shares of Skilled climbed more than 2% to $5.63 at the close.