HEALTH

Vencor to Buy Hillhaven: Tacoma, Wash.-based Hillhaven Corp. said it agreed to be acquired by Vencor Inc., a Louisville, Ky.-based provider of long-term hospital care that is about a third its size, in a stock swap valued at about $1.4 billion. The agreement comes after Hillhaven, the nation’s second-largest operator of nursing homes, last month rejected a bid from rival Horizon Healthcare Corp. That prompted Hillhaven’s largest shareholder, Tenet Healthcare Corp. of Santa Monica (formerly National Medical Enterprises Inc.) to mount a proxy battle to force a sale. Hillhaven holders are to receive $32.25 of Vencor stock for each share they own, a 32% premium over Hillhaven’s share price Friday. Under the definitive agreement, Vencor would also assume about $500 million of Hillhaven debt.