AthenaHealth Surges 23 Percent After Elliott Discloses Stake

(Bloomberg) -- AthenaHealth Inc. rose the most in five months after activist investor Elliott Management Corp. said it had amassed a 9.2 percent economic interest in the online medical-billing provider.

Shares of Watertown, Massachusetts-based AthenaHealth closed up 22 percent to $130.07 in New York, the biggest one-day gain since Dec. 15, after earlier rising as much as 23 percent. Before Thursday’s rise, the stock had dropped 19 percent in the past 12 months.

Elliott, which is led by billionaire Paul Singer, said Thursday that shares of AthenaHealth were substantially undervalued. The firm said in a regulatory filing that it may propose changes to the company’s operations, board and dividend policy, as well as a potential sale.

AthenaHealth spokeswoman Holly Spring said the company looks forward to hearing Elliott’s views on its actions to drive growth and create value for all shareholders. “We have great confidence in the company and where we are headed,” she said in an emailed statement.

Elliott has waged campaigns focused on tech companies including Gigamon Inc., EMC Corp., Citrix Systems Inc., CDK Global Inc., Mitel Networks Corp., NetApp Inc. and Juniper Networks Inc. The hedge fund has also targeted Samsung Electronics Co. with proposals to overhaul its corporate structure. Its current targets also include aluminum-parts maker Arconic Inc. and BHP Billiton Ltd., one of the world’s largest mining companies.

AthenaHealth, which provides internet-based services for doctors and other health providers, “operates in a highly strategic area at the intersection of technology and health care,” Elliott said in the filing.

--With assistance from Beth Jinks

To contact the reporter on this story: Zachary Tracer in New York at ztracer1@bloomberg.net.

To contact the editors responsible for this story: Elizabeth Fournier at efournier5@bloomberg.net, Drew Armstrong at darmstrong17@bloomberg.net, Michael Hytha