Regency Health Stock Falls 14% After Merger Talks Break Down
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TUSTIN — Stock in Regency Health Services, an operator of long-term care facilities, fell 14.3% Monday in the first day of trading after the company said late Friday that it had terminated merger discussions with an unnamed buyer.
Regency’s stock closed at $12.75 a share, down $2.125 from Friday’s close on the New York Stock Exchange.
The company declined to name its suitor and refused to elaborate on the breakdown of talks. John Adams, Regency’s president, said only that directors decided the sale of the company would not be in the best interest of Regency shareholders.
Lincoln Werden, an analyst with Prudential Securities Research in New York, said an acquisition may still be in Regency’s future. The company’s stock is inexpensive compared with competitors, and that makes them attractive as a takeover target, he said.
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