Lynch at Large

Blogster and investment publisher Steve Monroe asks the same questions I would ask about the Beverly transaction if I were that smart. Monroe is editor of the Senior Care Investor. His commentary on the sale is nothing short of BLISTERING, and I am not sure that he's exactly one of the "good guys.'

The “new” buyer, Fillmore Strategic Investors, is apparently not all that new, since we have heard in the market that they were in the original NASC deal with a $100 million equity commitment, and they just happened to be investors in the Mariner Health Care deal as well. They are also taking over NASC’s $1.875 billion debt commitment. Which leads us to wonder, is it really a new buyer? When did the lenders agree to the switch, and is there basically no difference? While NASC is “no longer a party to the merger agreement,” why didn’t Beverly keep NASC’s $10 million deposit as a penalty for not fulfilling its obligation to complete the deal at $13.00 per share? Beverly hasn’t said anything one way or the other, but it would go to the new buyer anyway, with the shareholders, once again, left holding the bag.