Shares of Kindred healthcare (KND) are on the rise after shareholder Brigade Capital expressed opposition to the company's proposed buyout by a consortium that includes Humana (HUM). Earlier this month, a Deutsche Bank analyst had also argued that a sale price of $9 per share was low for Kindred.

TAKEOUT PRICE TOO LOW: Earlier this month when reports of a buyout emerged, Deutsche Bank analyst Chris Rigg told investors in a research note that he felt a sale price of $9 per share was low. The analyst noted that he has always held the view that Kindred's shares could be worth substantially more over time if management could navigate the Medicare reimbursement challenges in the LTACH business. More importantly, he argued that any investor buying Kindred over the last year generally understands the levered equity dynamic and likely would see Kindred's takeout value well above the $9 price. Overall, Rigg pointed out that his sum-of-the-parts analysis continued to show a much higher valuation, around $15 per share.