Athenahealth shares fall 11% after Paul Singer backs out of takeover bid

Shares of athenahealth dropped 11 percent Sept. 18, after a report revealed Paul Singer's activist firm Elliott Management rescinded its $160-a-share takeover bid for the cloud-based health technology company, CNBC reports.

Late evening Sept. 17, the New York Post reported Mr. Singer was considering offering a bid at a lower price, and that other potential buyers had also backed away. Cerner and UnitedHealth Group were reportedly second-round bidders to acquire the company, but both opted to pass earlier this month.

Elliott Management proposed to buy athenahealth in May for $6.9 billion. At the time, the firm held an 8.9 percent stake in the company. One month later, after founder and CEO Jonathan Bush stepped down, athenahealth said it sought strategic alternatives. The company said it was considering a sale, merger or remaining an independent company.

As a result of Mr. Singer's retreat, athenahealth extended its final bid deadline by 10 days, to Sept. 27.

Shares of the company are about $127 per share. Overall, athenahealth shares are more than 7 percent higher this year, according to CNBC.

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