AthenaHealth, Inc (NASDAQ: ATHN) is flying early on in the market this morning, and for good reason. Stories are circulating that the company may soon receive a strong takeover bid. Of course, if this was to happen, and the transaction were to close, it would return substantial value to shareholders. So, it’s no surprise that the stock is being pushed up in the market this morning. Today, we’ll talk about:
- The potential takeover;
- what we’re seeing from ATHN;
- and what we’ll be watching for ahead.
ATHN Gains On Potential Takeover
As mentioned above, AthenaHealth is having an incredibly strong start to the trading session this morning after news broke that the company may soon be the center of a takeover offer. According to various reports, Elliot Managerment, an investment group founded by world-renowned market leader, Paul Singer, is interested in taking over the company.
According to these reports, Elliot Management is currently in the process of preparing to make an offer to takeover ATHN in an all-cash transaction. It is expected that the offer to take the company over will come in between $155 and $160 per share. About a year ago, Elliott Management took a 9.2% stake in the company. If the deal goes through, it would value the company at approximately $7 billion.
Nonetheless, it’s important to remember that this potential takeover is far from set in stone. In fact, while it is expected that an offer will be made soon, no offer has been made by Elliott Management to take the company over just yet. So, if you’re going to trade on this news, please be sure to do so with caution.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. In this particular case, the news is clearly exciting. After all, if Elliott does indeed decide to make the offer, and the offer is taken, it would represent a premium of well over 20% from the stock’s most recent closing price. So, it’s no surprise that investors are excited and sending the stock on a run for the top. As is almost always the case, our partners at Trade Ideas were the first to alert us to the gains. At the moment (9:34), ATHN is trading at $152.15 per share after a gain of $26.07 per share or 20.68% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on ATHN. In particular, we’re interested in following the story surrounding the potential takeover and excited to see if this deal does indeed come to fruition. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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