Update 3:35pm: Adds CVS potential bid.
Cano Health (NYSE:CANO) soared 38% after reports that Humana (NYSE:HUM), CVS Health (NYSE:CVS) and other possible buyers are circling the primary-care provider.
A deal for Cano Health (CANO) could be struck in the next several weeks, according to a WSJ report, which cited familiar sources. The Miami-based company is working with financial advisers and CVS is said to be weighing a potential bid, according to a separate Bloomberg report.
The reports come after Owl Creek Asset Management, which owns 8.69 million shares, or a 3.75% stake, last month urged the company to pursue strategic alternatives, including a possible sale. Owl Creek is urging Cano (CANO) to engage with investment bankers to pursue a sale to a strategic buyer.
The Owl Creek push followed activist investor Dan Loeb’s Third Point hedge fund in March pushing for CANO to explore strategic alternatives, including a potential sale. The share surged 43% on March 9 with Third Point pushing for the sale.
A potential Cano Health (CANO) sale also comes after other recent deals in the space including Amazon’s (AMZN) purchase of One Medical (ONEM) for $3.9 billion in July and CVS’s (CVS) recent deal to acquire Signify Health (SGFY) for $8 billion, $30.50/share, or a 54% premium to where it traded before reports of a potential deal.