Genesis stock rises as investors digest planned Meridian merger

September 23, 1993|By Dow Jones News Service

NEW YORK — 'TC NEW YORK -- A delayed reaction to Genesis Health Ventures Inc.'s planned purchase of a privately held nursing home company in Towson apparently sent shares of the company higher yesterday in active trading on the New York Stock Exchange.

Market players said investors were finally digesting the pending merger with Meridian Healthcare, which is widely considered a boon for Genesis, with headquarters in Kennett Square, Pa.

Meridian is "a high-quality chain of nursing homes," said Michael Leconey of RAS Securities. "There are very few like this. It's the kind of chain you would want to buy."

Genesis announced Monday that it would buy Meridian for $205 million, including assumed debt.

Genesis closed up $1.25 a share yesterday, at $17.25, on volume of 146,300 shares, compared with average daily volume of 39,800.

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