Cano Health (NYSE:CANO)
It has been reported that UnitedHealth (UNH) is in the midst of a sales process for CANO stock, a primary care services company. In early trade, CANO stock was down 2.6%.
It has been reported that UnitedHealth (UNH) is involved in the process, but the health insurance company may encounter roadblocks since Humana (HUM) has a right-of-first-refusal for any transaction, including CANO stock, as discussed in a Dealreporter article from earlier on Thursday.
Private equity firms and strategic purchasers both have an interest in Cano Health (NYSE:CANO), although the latter has a distinct disadvantage due to the current state of the credit markets. Given the ROFR circumstance, Humana (HUM) hasn’t researched a possible deal extensively.
The newest news on Cano Health (NYSE:CANO) comes after CANO stock jumped 32% a week ago amid media rumors that Humana (HUM) and CVS Health (CVS) are interested in CANO.
In a Friday research report, a Citi analyst suggested that CANO stock could be worth $14/share in a takeout.
It was reported in the WSJ that a deal for Cano Health (CANO) might be reached in the following weeks, citing people with knowledge of the matter. It has been reported that CVS is considering making an offer to acquire the Miami-based firm and that the business is consulting with financial advisors.
Reports surface after Owl Creek Asset Management, holder of 3.75 percent of the company’s shares, or 8.69 million shares, asked the business to explore strategic options such as a sale last month. Owl Creek recommends that Cano Health (NYSE:CANO) work with investment bankers to facilitate a sale to a strategic buyer.
After activist investor Dan Loeb’s Third Point hedge fund pushed for CANO to investigate strategic options in March, including a possible sale, Owl Creek joined the fray in May. The share rose 43% on March 9, with Third Point pressing for the sale.
The possible sale of Cano Health (NYSE:CANO) follows previous mergers in the sector, such as Amazon’s (AMZN) $3.9 billion acquisition of One Medical (ONEM) in July and CVS’s (CVS) $8 billion acquisition of Signify Health (SGFY) for $30.50 per share, a 54% premium to its trading price before rumors of a possible deal.
According to reports, the sales process for CVS stock is now in its second phase, while UnitedHealth is reportedly nearing.
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