AMED - Amedisys cut to hold at Jefferies as rival bids to UNH unlikely
2023-07-06 13:31:30 ET
Amedisys ( NASDAQ: AMED ) was cut to hold from buy at Jefferies as the company isn't expected to see competing bids for it s $101 a share sale to UnitedHealth ( NYSE: UNH ).
Other potential acquirers of Amedisys ( AMED ) would likely have already surfaced since the original deal for Option Care Health ( NASDAQ: OPCH ) to combine with Amedisys was reported in early May, Jefferies analyst Brian Tanquilut wrote in a note on Thursday.
"Additionally, we believe it's difficult for a non-payor to deliver a superior offer to UNH's, given that company's deep pockets and ability to match any other competing offers," Tanquilut, who raised his AMED price target to $101 from $98, wrote in a note.
The UnitedHealth deal is likely to see scrutiny from the Federal Trade Commission and will likely receive a "second request." Tanquilut added. "Even after the edition of AMED, UNH would own <10% of the home health and hospice sector, and market-by-market analysis would show it to be even less concentrated, barring a few geographies.
With the announcement of the UNH deal, Amedisys ( AMED ) said it terminated its previously disclosed merger agreement with Option Care Health ( OPCH ) in return for a $106 million termination fee.
More on Amedisys and UnitedHealth
- Optum bid for Amedisys a surprise, though likely to get antitrust approval - analysts
- Paycom, Chipotle highlight Goldman's Rule of 10 stock screens
- UnitedHealth: Back Up The Truck
- Amedisys: Even Without A Bidding War, The Company Appears Undervalued
More on Amedisys and UnitedHealth
- Optum bid for Amedisys a surprise, though likely to get antitrust approval - analysts
- Paycom, Chipotle highlight Goldman's Rule of 10 stock screens
- UnitedHealth: Back Up The Truck
- Amedisys: Even Without A Bidding War, The Company Appears Undervalued
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Amedisys cut to hold at Jefferies as rival bids to UNH unlikely