Investors Buy 9.99% Stake in Apria Healthcare Group

An investment group acquired a 9.99% stake in Apria Healthcare Group Inc.

Relational Investors LLC and its affiliates, which hold 5.14 million shares of common stock, said in a report filed Thursday with the Securities and Exchange Commission that they believe Apria is undervalued.

Costa Mesa-based Apria, a provider of home health care services, hired investment bank Goldman, Sachs & Co. to help explore options such as finding a buyer. Apria stock closed Thursday at $14, unchanged.

If this process doesn’t boost the company’s stock price, the investors said, they intend to ask Apria directors to assess the effectiveness of the board and the performance of senior management.

The group includes David Batchelder and Ralph Whitworth, who advised investor Kirk Kerkorian on his attempt to get Chrysler Corp. to improve the value of its stock.