FORTUNE — Kindred Healthcare offered Gentiva Health Services about $533 million in an unsolicited takeover bid, the company announced Thursday.
The $14 a share offer was rejected by the Atlanta-based company on May 13, according to emails between the two healthcare providers released by Kindred.
Gentiva’s board believes that their “long-term strategy as a stand-alone company will generate substantially more value to our shareholders,” wrote Rod Windley, Gentiva’s chairman.
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Kindred, based in Louisville, K.Y., said it would pay $7 a share in cash and $7 a share in stock and would be willing to increase its bid to 100% cash. The offer represents a 64% premium based on Gentiva’s closing price on Wednesday.
The combined company would serve nearly 127,000 patients a day across 47 states and would generate annual revenues of almost $7.2 billion. Kindred expects the deal to yield about $60 million to $80 million in savings over two years with $40 million expected in the first year, the company said.
Kindred CEO Paul Diaz sought to appeal directly to Gentiva shareholders by making the deal known, adding that they would benefit from an “immediate premium” and a “meaningful dividend.”
“The strategic and financial benefits of the proposed transaction are highly compelling,” said Diaz. “And we are confident that it would create more value for Gentiva stakeholders than Gentiva could achieve on a standalone basis.”
