Morning Brief: Elliott Pushes Athenahealth About Its Takeover Offer

May 15, 2018   Stephen Taub

The activist firm said it is not satisfied with the health care software company's response to its offer.

Elliott Management continues to turn up the heat on Athenahealth. In a new letter to the board, the sometime-activist admonished the company for not responding to its $160 takeover offer from last week except for its "cursory, boiler-plate press release." The hedge fund said it has not received direct communication "despite our emails and messages" offering to discuss next steps or to answer any questions regarding its proposal. Elliott also said none of the company’s advisors have contacted the firm.

"We find this lack of communication concerning because, unfortunately, this is the same pattern of behavior we experienced when we tried to get the company to engage in November," Elliott added in the letter. "Athenahealth’s board refused to engage with us, despite our repeated offers to make ourselves available for discussion." Elliott referred to the company’s response as "nothing more than a one-paragraph letter dismissing our interest," adding it initially was not signed. Shares of the cloud-based health care software company fell 1.2 percent on Monday, to close at $149.16. The stock is also a high-profile short position of David Einhorn’s Greenlight Capital.

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The Société Générale CTA Index gained slightly in April, trimming its loss for the year to 2.74 percent. The SG Trend Index gained 0.41 percent, cutting its loss to 3.48 percent for the year. The firm says performance of trend followers was driven by energy, bonds, currencies, and equity indexes.

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Philippe Laffont’s Coatue Management established a new stake of nearly 14.5 million in Micron Technology, making the chip maker the Tiger Cub’s sixth-largest U.S. long as of the end of the first quarter, according to its latest 13F filing.

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King Street Capital, known mostly for its distressed investing strategy, established a new one-million-share stake in Time Warner in the first quarter, according to its latest 13F filing. The shares immediately became the hedge fund firm’s second-largest individual U.S. long common stock position. The investment is a merger arb play as the company awaits regulatory approval to be acquired by AT&T.

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Seth Klarman’s Baupost Group reported a $10.37 billion U.S. stock portfolio as of the end of the first quarter, up slightly from the prior three-month period. Its two largest longs remained Cheniere Energy, the liquefied natural gas company, and Synchrony Financial.


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