AMED - Option Care Health likely to have difficulty getting vote for Amedisys deal

2023-06-05 10:19:17 ET

Option Care ( NASDAQ: OPCH ) is expected to have a difficult time getting the shareholder vote needed for a stock deal with Amedisys ( NASDAQ: AMED ).

Option Care ( OPCH ) was going to have a "very hard time" getting the vote, according to CNBC's David Faber, who cited a number of large holders that he spoke to.

The report comes after Amedisys ( AMED ) announced on Monday that it received a rival all-cash $100 a share bid from UnitedHealth's ( NYSE: UNH ) Optum unit. Amedisys is now having exploratory negotiations with Optum about a transaction. Amedisys ( AMED ) soared 15% on Monday on the news.

The value of Option Care's ( OPCH ) original deal with Amedisys ( AMED ) was around $98 a share, but with the plunge in Option Care's, which dropped 16% on May 4 on the announcement, fell to about $86 a share. Option Care ( OPCH ) shares jumped 7.4% in early trading on Monday.

A potential UnitedHealth ( UNH ) deal for Amedisys ( AMED ) may have some antitrust concerns, though CNBC's Faber downplayed the worries, saying the deal is too small to have issues.

A potential Optum purchase of Amedisys ( AMED ) comes after UNH's Optum completed its $5.4 billion cash purchase of home-health care provider LHG Group in February. LHC provides post-acute care mostly for Medicare beneficiaries, including home care.

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