Kindred Healthcare disclosed that at least one buyer was in early talks to buy the entire company.

Don’t you just love rumors? Last week, Kindred Healthcare disclosed that they were well on their way to divesting their remaining skilled nursing facilities, as planned, mostly in groups of facilities to different buyers. But we have also heard there was someone interested in the entire portfolio. Kindred also revealed that someone was in early discussions to buy the entire company. The shares jumped 15%. Now, readers may remember that we have been saying for some time now that the stock was undervalued, and that the components were worth well above the current market cap. Others do not agree, citing the pressure on LTACs and the rehab business, not to mention lower margins in Kindred’s growing home health business in the fourth quarter. We still think it makes sense for a private equity firm or two to take a look, but we question whether it makes sense for an insurer like Humana, a rumored buyer, to get involved with these three operating businesses. When Kindred releases its first quarter earnings next week, we hope to have more clarity. But the gains of last week may be washed away this week.