Shares of Cano Health (CANO) are sharply higher after Daniel Loeb’s Third Point reported a 6.37% stake in the company in a regulatory filing earlier this morning and said the firm believes the company “should immediately engage financial and legal advisors to commence a review of strategic alternatives.” The filing stated that Third Point has “confidence in the (company’s) operating strategy and management team. However given recent developments at the (company) and taking into account the market’s largely unfavorable view of companies taken public through special purpose acquisition vehicles, the (firm) believes the Board of Directors should immediately engage financial and legal advisors to commence a review of strategic alternatives. The (firm believes) this strategic review should focus on a sale of the (company), and that a properly run sales process is likely to result in offers representing a substantial premium to the (company’s) trading price. The (firm believes) that the (company) is unlikely to achieve such valuation on a stand-alone basis, in part due to structural issues with its shareholder base. The (firm has) no present plan to pursue a proxy contest with the (company), but may consider initiating a proxy contest seeking to elect one or more members of the Board and bring such other proposals as the (firm deems) appropriate should the Board not adequately address the value gap between the current share price of the (company) and the intrinsic value thereof, including by commencing a review of strategic alternatives,” the filing stated. In afternoon trading, Cano Health shares have jumped $1.66, or 36%, to $6.22.
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