Shawshank, VA 5/11/12 (StreetBeat) -- Covington Investments LLC made public an offer to acquire Advocat Inc (Nasdaq: AVCA) in a deal valued at $50 million, after the healthcare services provider declined to discuss its proposal.
Covington, which already owns about 12 percent of Advocat, offered $8.50 per share, a premium of 96 percent to Advocat's Thursday close.
The $50 million valuation is based on the 5.88 million shares that Advocat had as of April 30.
"We were surprised and disappointed that Advocat's Board of Directors has shown no interest in a discussion to explore our acquisition proposal," said Covington, whose units provide skilled nursing and assisted living services.
Covington said it remained interested in pursuing discussions "in a mutually agreeable and negotiated manner if possible."
Advocat shares were up 71 percent at $7.43 on Friday morning on the Nasdaq.
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