Athenahealth, Inc. Shares Soars on Elliott Management Bid

Athenahealth, Inc (NASDAQ:ATHN) stock was flying high on Monday following a bid made by Elliott Management.

Athenahealth, Inc. Shares Soars on Elliott Management Bid
Source: athenahealth

The offer made by Elliott Management values athenahealth, Inc stock at $160 per share. This represents a roughly 27% premium to ATHN stock’s closing price on Friday. The company notes that the offer for its stock is cash and that it is unsolicited.

Here’s the company’s statement on the matter.

“Consistent with its fiduciary duties and following consultation with its independent financial and legal advisors, the athenahealth Board of Directors will carefully review the proposal to determine the course of action that it believes is in the best interest of the Company and athenahealth shareholders. athenahealth shareholders do not need to take any action at this time.”

The offer of $160 per share for ATHN stock has Elliott Management valuing the company at more than $7 billion. However, the offer is only slightly higher than athenahealth, Inc’s 52-week peak. As such, it is likely the company will reject the offer.

Elliott Management’s offer for athenahealth, Inc came along with a letter to the company’s Board of Directors. It points out that a better deal is possible. The letter also notes that it believes ATHN hasn’t been making the changes necessary to grow as a company, reports

Athenahealth, Inc also says that its legal consul is coming from Weil, Gotshal & Manges LLP. The financial advisor for the provider of network services to healthcare companies is Lazard.

ATHN stock was up 16% as of noon Monday, but the stock is down 7% year-to-date.

As of this writing, William White did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media,

©2021 InvestorPlace Media, LLC