Elliott Management Corp. made athenahealth an unsolicited $6.5 billion takeover offer after growing frustrated with the company's performance, the Chattanooga Times Free Press reports.
Here's what you should know.
1. On news of the offer, athenahealth's stock soared 21.59 percent at market open May 9.
2. Elliott Management owns 9 percent of athenahealth currently. The company alleges athenahealth has not made the needed changes to grow and create value as a company.
3. In a letter to athenahealth's board, Elliott Management said, "[athenahealth] despite all of its promise, has not worked for many years and will not work in the future." Elliott Management criticized the company's lack of stable leadership, referencing athenahealth's revolving door of a CFO position. The company has had five CFOs in the last four years.
4. This is the second time Elliott Management has approached athenahealth on the grounds of a potential takeover.
5. Athenahealth said its board of directors would review the proposal.
6. The current $6.5 billion bid would amount to $160 per share in cash per stockholder. Elliott also said the bid could increase, if it is allowed to conduct private diligence.