Athenahealth (ATHN) stock surged after receiving an unsolicited takeover offer from Elliott Management, leading a busy Monday in mergers-and-acquisitions news.
XDeals actually announced include International Flavors & Fragrances (IFF) agreeing to buy an Israeli flavors and ingredients maker; Blackstone (BX) buying Gramercy Property Trust (GPT); and E.ON (EONGY) snapping up wind-power company Vortex Energy.
Athenahealth
The provider of cloud-based medical software confirmed Monday that it received an unsolicited bid from Elliott Management for $160 per share in cash, saying the board will "carefully review the proposal" and that shareholders do not need to take any action now.
Earlier, sources told CNBC that Paul Singer's Elliott Management was lining up an all-cash bid worth $155-$160 per share, potentially putting any deal's worth around $7 billion, including debt.
Share gapped up 15% to 145.44 on the stock market today, after jumping as high as 25.5% earlier. The stock is ranked fifth in the Computer Software-Medical Group, however it has a mediocre IBD Composite Rating of 76. Last month it got a Relative Strength Rating upgrade, however it has since tumbled to just 39.
The company's founder and CEO Jonathan S. Bush is the cousin of U.S. President George W. Bush and the brother of television presenter Billy Bush. Greenlight Capital took a short position on Athenahealth a few years ago. Athenahealth has yet to comment on the bid claims.
International Flavors & Fragrances
The fragrance-compound supplier has announced it will buy Israeli company Frutarom Industries for around $7.1 billion. The deal will see shareholders receive $71.19 in cash for each share and 0.249 of a share of IFF common stock. It represents a total value of $106.25 a share.
The deal is expected to realize around $145 million in run-rate cost synergies by the third year. The cash-and-stock deal is also expected to have no effect on earnings per share in the first full year.
Shares of New York-based International Flavors & Fragrances sank 9.6%, diving below their 50-day average. It ranks eighth in the Cosmetics/Personal Care Group and has a decent IBD Composite Rating of 82. It produces fragrance compounds for consumer products manufacturers and flavor compounds for food and beverage manufacturers
Blackstone
Blackstone is to buy commercial real estate giant Gramercy Property Trust in a cash deal valued at $7.6 billion. The $27.50 per share offer is a 15.4% premium on Friday's 23.82 closing price for the firm, which owns office buildings and warehouses in the U.S., U.K. and Europe.
Shares in Blackstone were up 0.1%, while Gramercy Property Trust shot up 15.5% to 27.51. Both firms have dire IBD Composite Ratings, with Blackstone's standing at 30 and Gramercy's coming in slightly higher at 50.
Blackstone is the world's biggest investor in real estate. It has around $120 billion in investor capital under management. In recent years its real estate business has been a bigger contributor to earnings than its private equity division.
E.ON
E.ON is snapping up wind-power company Vortex Energy for an undisclosed amount.
The German utility giant is aiming to expand its wind footprint, while reducing its carbon footprint. Vortex provides a useful opportunity for this aim, as it has 300 megawatts of wind energy in its pipeline. The latter company's non-German activities are not included. The terms of the deal have not been disclosed and it is subject to approval from antitrust authorities.
E.ON shares were up 0.2%.
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The post Athenahealth Confirms Takeover Bid; IFF, Blackstone Clinch Deals appeared first on Investor's Business Daily.
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