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A day after the New York Post reported that Elliott Management is reconsidering its $160-per-share bid for athenahealth, a source with knowledge of the process told MedCity that Elliott remains engaged and is working toward submitting a bid.
In other words, it’s not really backing off from bidding or withdrawing from the process.
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On Monday, the New York Post reported that Elliott had backed away from its $160-per-share bid for the Watertown, Massachusetts company, but that it may also be considering making an offer at a lower price. Following the New York Post report, shares of athenahealth plunged but later regained ground. The company has also extended the deadline for a final bid by 10 days to September 27.
CNBC reported that the deadline adjustment wasn’t necessarily due to Elliott Management recoiling, but was rather a step to make room for a potential new buyer. It has been reported that Cerner and UnitedHealthcare decided not to make bids on athenahealth.
Elliott Management originally made a $6.9 billion offer for the company back in May at $160 per share. The firm was aggressive in pursuing athenahealth, sending multiple letters urging the vendor to carefully consider a sale.
In early June, Jonathan Bush stepped down from his positions of president, CEO and a member of the board of directors. His departure came after he admitted to physically attacking his ex-wife and as allegations of his inappropriate behavior at athenahealth were brought into the spotlight. Bush’s resignation was described by the New York Times as a victory for Elliott Management, “one of the world’s most powerful hedge funds.”
