Why is Brookdale Senior Living Inc. in talks with suitors about a possible sale of part or all of the company, the nation's largest operator of senior living centers?
The talks are at an early stage and may not lead to a deal, people familiar with the matter said according to the January 11, 2017 issue of The Wall Street Journal.
However, its shares tumbled in the last couple of years with long-term debt and lease obligations of nearly $6 billion as of September. Shares have fallen from nearly $40 in 2015, surged 15% Tuesday to close at $14.80 after The Wall Street Journal reported on the deal talks.
Land and Buildings, a well-known real-estate investor that owns about 2% of Brookdale, said last month that the slumping stock price is evidence a new review is needed.
Why is that? Could it be that the Brookdale's business plan isn't working?