Athenahealth, Elliot Management speak out: 5 updates on the $7B acquisition proposal

Elliot Management made an unsolicited bid for athenahealth in early May worth almost $7 billion. Athenahealth has yet to release its decision on the bid, although the company has confirmed it is reviewing the proposal.

Here are five updates on the proposed deal.

1. Elliott Management issued a bid for athenahealth May 7 at $160 per share in a deal that could be worth roughly $7 billion, including debt. In its proposal to acquire athenahealth, Elliott Management wrote that "despite all of [athenahealth's] promise" the company "has not worked for many years."

2. Athenahealth released a statement the same day, characterizing the bid as an "unsolicited acquisition proposal" and stating its board of directors would "carefully review the proposal to determine the course of action that it believes is in the best interest of the company and athenahealth shareholders."

3. In a May 14 letter to athenahealth's board of directors, Elliott Management expressed concern that neither athenahealth nor the company's advisers had reached out to the firm, despite Elliott Management sending the company multiple messages offering to address any questions about its proposal.

4. Elliott Management penned a letter May 24 confirming athenahealth's advisers had reached out after the firm's May 14 letter, and noted the company's board is reportedly discussing the proposal. The firm suggested athenahealth authorize its advisers to initiate a sale process for the company, during which Elliott Management would participate as a bidder.

5. In response to Elliott Management's May 24 letter, athenahealth released a statement confirming its board is undertaking a "thorough and deliberate analysis of Elliott Management's proposal." Athenahealth added the company will "continue to take the time necessary to complete this review notwithstanding Elliott Management's attempts to publicly pressure the board and management team."

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