On May 7, Elliott Management made an unsolicited bid for athenahealth at $160 per share in a deal that could be worth roughly $7 billion, including debt. Athenahealth released a statement the same day, 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.”
However, in a May 14 letter to athenahealth’s board of directors, Elliott Management said “since that time, we have heard nothing from the company beyond its cursory, boilerplate press release.” The firm said neither athenahealth nor the company’s advisers have reached out, despite Elliott Management sending the company multiple messages offering to address any questions about their proposal.
“Elliott believes that, for the benefit of shareholders and the company, this pattern of behavior needs to stop,” reads the May 14 letter, signed by Jesse Cohn, a partner and senior portfolio manager at Elliott Management.
“Our proposal to acquire athenahealth represents an attractive proposition, and numerous shareholders, research analysts and media sources have agreed that athenahealth should engage with us to explore whether a value-maximizing transaction is achievable,” the letter continues.
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