Morning Briefing
Summaries of health policy coverage from major news organizations
Critical Of Athenahealth's Performance, Hedge Fund Offers To Buy It For $6.5B
Bloomberg: Athenahealth Surges After Elliott Seeks $6.46 Billion Takeover
Athenahealth Inc. surged after activist investor Elliott Management Corp. bid to acquire the medical company for $160 a share, saying executives had “failed to correct a host of operational issues.” Elliott, the New York hedge fund led by billionaire Paul Singer, said Monday that it made an all-cash takeover offer, which would value Athenahealth at $6.46 billion. Athenahealth, which makes an online platform doctors use to manage their practices, said in a statement that its board will “carefully review the proposal.” (Deveau and Ockerman, 5/7)
Boston Globe: Hedge Fund Elliott Management Offers To Buy Athenahealth For $6.5 Billion
[Paul] Singer had already owned a large position in athenahealth and pressured the company into cost cuts that resulted in about 500 layoffs last year. But on Monday, Elliott said the company has not done enough, and it criticized in particular the recent decision to appoint former General Electric Co. chief executive Jeff Immelt as its new chairman. “We believe the unfortunate but inescapable reality is that performance at athenahealth is not going to get better,” Elliott said in a letter to athenahealth’s board. (Rosen, 5/7)
