Athenahealth shares recover losses on report it may receive a late offer

Sept. 19, 2018

Athenahealth shares recovered some losses on Sept. 18 after CNBC reported the healthcare technology company extended its deadline for bids to accommodate a late offer.

On the evening of Sept. 17, the New York Post reported that Paul Singer’s activist firm, Elliott Management, had backed away from its $160-a-share bid for Athena. Singer could be mulling a bid at a lower price, the Post said, citing sources. As a result of Singer’s retreat, Athena has extended the final bid deadline by 10 days, the paper said.

However, sources told CNBC’s David Faber that the delay was not a result of Singer backing out but a step made to accommodate a new potential strategic bidder.

“I’m kind of hearing a bit of a different story there,” Faber said on CNBC. “I’m hearing a late strategic was added and they did sort of push back the date to the 27th.”

Elliott Management officials weren’t immediately available to comment. An Athena spokesperson said the company had no comment.

In May, Elliott Management said it was willing to pay a total of $6.9 billion contingent on due diligence. At the time, Elliott said its stake in the company was at 8.9%.

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