Amedisys Inc told investors it received an unsolicited $100 per share bid from UnitedHealth Group’s Optum unit that may be ‘superior’ to a planned merger with Option Care Health, sending its shares higher in early Monday trade.
The Baton Rouge, Louisiana-based healthcare company already agreed to merge with Option Care Health in an all-stock transaction in a deal announced on May 3, 2023. However, it said its board consulted with its outside counsel and financial advisors to “thoroughly evaluate” Optum’s proposal.
The merger with Option Care Health values the company at about $97.38 per share.
“The Board determined that the unsolicited proposal received from Optum could reasonably be expected to result in an 'Amedisys Superior Proposal’ as defined in Amedisys’ merger agreement with Option Care Health,” the company said.
“As permitted by the terms of Amedisys’ merger agreement with Option Care Health, Amedisys entered into a confidentiality agreement with Optum on May 30, 2023, and is currently engaging in exploratory discussions with Optum with respect to Optum’s proposal.”
The company said it remains bound by the terms of the merger agreement with Option Care Health and there can be no assurance that the discussions with Optum will result in a transaction.
The recommendation by its board in favor of the merger with Option Care Health continues to be in effect, it added.
The company’s shares were 13% higher at $90.10 shortly before midday on Monday.
Amedisys is one of the largest home health providers and the second-largest hospice care provider in the US.
Contact the author at stephen.gunnion@proactiveinvestors.com