DaVita Alters Price for Stock Buyback
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DaVita Inc., a Torrance-based operator of dialysis centers, lowered the price range and the amount of stock it plans to repurchase in a tender offer.
The company modified the offer after its stock price fell in response to an intensified government investigation of the company, which derives more than half of its dialysis revenue from Medicare.
The investigative arm of the Health and Human Services Department subpoenaed financial and billing records back to May 1996.
DaVita reduced the amount it would pay to a range of $21 to $25 a share from $22 to $26, and it now plans to repurchase 15 million shares, or 18% of its shares outstanding, from 20 million, or 24%. The offer expires May 30.
DaVita’s shares closed down 42 cents at $21.97 on the New York Stock Exchange.
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