Deaths at French care home hit shares of healthcare group Korian

[April 01, 2019]  LHERM, France (Reuters) - Shares in social healthcare provider Korian fell more than 7 percent on Monday after five elderly residents in a care home it managed in southwestern France died from suspected food poisoning.

The local authority said 22 residents fell ill after Friday's evening meal at the Cheneraie care home in Lherm, 30 kilometers (18.64 miles) south of Toulouse. Of those, five died and 15 were seriously ill and treated in hospital.

The home is run by Omega, which Korian bought earlier this year.

A Korian spokesman was not immediately available for comment.

A source close to the investigation said the home's catering operation had recently been outsourced.

Korian's share price was down 7.26 percent at 33.46 euros per share by 0918 GMT, its sharpest daily fall since February 2018.

Korian has operations in Germany, Belgium, France, Italy and Spain. In France, it manages 294 nursing homes and employs over 20,000 people, according to the company's website.

(Reporting by Blandine Henault and Julie Rimbert; Writing by Richard Lough; Editing by Sudip Kar-Gupta and Kirsten Donovan)

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