Friday, September 30

Humana, CVS among firms looking to buy Cano Health – reports


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Humana and CVS Health are among the several companies looking to buy senior-care facility operator Cano Health, according to media reports on Thursday, sending Cano’s shares up about 50%.

The talks are serious and a deal to purchase Cano could be struck in the next several weeks, the Wall Street Journal said on Thursday citing people familiar with the matter.

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Healthcare companies have been expanding beyond managing health and pharmacy benefits with acquisitions of doctors groups and surgical centers in recent years.

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Cano operates primary-care centers in several US states including California, Florida, Nevada, New Mexico, Texas, Illinois, and New York.

Hedge fund Third Point LLC, which owns 6.4% of Cano, has been pushing the Miami-based company to put itself up for sale as its stock price has tumbled since it went public with a blank check company. (https://reut. rs/3ffLswk)

Cano is exploring several options including a sale and is working with its financial advisors, according to a Bloomberg report which also cited people familiar with the situation. (https://bit.ly/3xOAe8D)

Cano did not immediately respond to Reuters requests for comment, while Humana and CVS said they do not comment on rumors or speculation. (Reporting by Mrinalika Roy in Bengaluru; Editing by Shailesh Kuber)



financialpost.com

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